Tag: receivables increase analysis

  • What Does an Increase in Receivables Indicate?

    What Does an Increase in Receivables Indicate?

    Receivables are rising faster than sales. How can I assess whether the issue is weak collection discipline, deteriorating customer quality or flawed credit policy? An increase in receivables is not automatically a problem. But when receivables grow faster than sales, it becomes a structural signal. The key question is not “Are receivables rising?”It is “Why…