Stockwire

Buy now, pay never

Consistently high receivables and their write-offs are a red flag as they tend to keep the profits in check and signal inefficiency

Buy now, pay never

If you buy anything on credit from a store, do you know where the transaction will find itself ? The shopkeeper will record it as a trade receivable. With big companies, things are not much different. Products sold on credit are considered a part of trade receivables in their balance sheets. Sales done through long credit periods may be a major overhang for a company


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