Growth & Momentum
Receivables Growth YoY
Shows how much the days needed to turn credit sales into cash rises or falls against the same period one year earlier. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amo
Receivables Growth YoY
receivablesGrowth · Growth & Momentum
- Definition
- Shows how much the days needed to turn credit sales into cash rises or falls against the same period one year earlier. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exaggerate the signal.
- Calculation
- (Current period value - prior comparable period value) / absolute prior comparable period value.
- Uses
- Useful for detecting acceleration, deterioration and persistence. It works best in businesses with recurring or secular demand; it is weaker in cyclicals, commodities, banks, insurers and turnarounds. Cross-check with margins, ROIC, FCF per share, debt and dilution.
