Debtors turnover ratio
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
12 October 2011
HI
MEMBER
I WANT TO KNOW ABOUT DEBTORS TURNOVER RATIO?
FOR GOOD POSITION OF COMPANY WHETHER IT SHOULD BE HIGH OR LOW?
WHAT ARE CONSEQUENCES OF HIGH OR LOW RATIO?
PLEASE EXPLAIN
THANKING YOU IN ADVANCE
MEMBER
I WANT TO KNOW ABOUT DEBTORS TURNOVER RATIO?
FOR GOOD POSITION OF COMPANY WHETHER IT SHOULD BE HIGH OR LOW?
WHAT ARE CONSEQUENCES OF HIGH OR LOW RATIO?
PLEASE EXPLAIN
THANKING YOU IN ADVANCE
16 October 2011
Debtors turnover ratio should always be low.
However,DTR may vary company to company. Some company may operate on advance payment basis and some may operate on credit basis.
If your DTR is very high, then you should moitor the same very closely. ie. till the money get realised.
However,DTR may vary company to company. Some company may operate on advance payment basis and some may operate on credit basis.
If your DTR is very high, then you should moitor the same very closely. ie. till the money get realised.
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