Receivables Turnover (Days)
Normally higher sales growth means a higher receivables balance. Ideally we would like to see the receivables growth smaller than the sales growth. We have added the Sales and Receivables Balance to the report; and we can show the trend by adding a Date dimension.
Looking at the data we can see that Sales have tripled in recent years but the Receivables Balance has grown almost 7 times. Further analysis can be done by using a special KPI – Receivable Turnover Days. With this we see that it has grown over 3 times.
From the chart area we can see the Sales have almost tripled. We can also see that Receivable Balance has the highest growth growing from just over 835 thousand to just under 6 million - 7 times growth.
The reason for this could be increased payment terms or poor payment discipline. | |  | |
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 | | Before due / Overdue Analysis
With the Due Analysis dimension we can analyse the receivables overdue structure further.
From the Line Chart we see that both, the "before due” and “overdue” balance are increasing. The “before due” balance is increasing faster.
The Area Chart highlights how the overdue balance trend has increased its’ share from 65% in 2006 to 80% for 2007 and 2008, and has now decreased to 60%.
The decreasing trend should be something that we aim for to ensure more of the debt is collected before it is overdue. | |
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Overdue Analysis
By using Pie Chart when analyzing Overdue Balance we can show the ageing of the debt.
We can see that only a small part - about 25% - is due within less than 180 days.
On the other hand, the majority of the overdue debt relates to transactions that are more than a 180 days overdue. | |  | |
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 | | Worst Customers Analysis
To get a more detailed picture of our worst customers, we added the Customer dimension, sorted the data by the overdue total and filtered only the top 80% of debt.
This is now a list of our most problematic customers. We can see that the oldest and largest debt actually belongs to the top 7 customers in this list.
These are BAD customers and will need the most attention from our credit controllers to ensure the debt is recovered. | |
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