If days' sales in receivables are growing faster than for other companies in the industry, a cash shortage may be looming.

Name: If days' sales in receivables are growing faster than for other companies in the industry, a cash shortage may be looming.
Brand: Quizplus
Rating: 5.0 (44 reviews)

Question

Quizplus · Accepted Answer

If days' sales in receivables are growing faster than the industry average, it indicates that the company is taking longer to collect its receivables, which can lead to cash flow issues and potential cash shortages.

If Days' Sales in Receivables Are Growing Faster Than for Other