Question: I read your post and you bring a great ratio between day sales uncollected and accounts receivable turnover. First, accounts receivable turnover is how often
I read your post and you bring a great ratio between day sales uncollected and accounts receivable turnover. First, accounts receivable turnover is how often a business can collect its accounts receivable in a reporting period (Wild & Shaw, 2023). Also, the number of days sales uncollected is the average amount of time, measured in days, that a business waits to fully collect on its accounts (Wild & Shaw, 2023). It is evident that if a business has to wait longer to receive full payments on its sales then its accounts receivable turnover will lower. You pointed this out with the example of Mattel which had an increase in its days sales uncollected and therefore a decrease in its accounts receivable turnover. What do you think is a good idea for Mattel to raise their accounts receivable turnover rates? Thank you
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