Growth & Momentum
Receivables Growth QoQ
Shows how much the days needed to turn credit sales into cash rises or falls between consecutive quarters. To interpret it correctly, the base must be comparable and positive, because acquisitions, FX, inflation, accounting changes or near-zero amounts can exa
Receivables Growth QoQ
receivablesGrowthQoq · Growth & Momentum
- Definition
- Shows how much the days needed to turn credit sales into cash rises or falls between consecutive quarters. 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 quarter value - previous quarter value) / absolute previous quarter 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.
