## Receivables Performance Analysis

### Slide Content

This PowerPoint slide discusses 'Receivables Performance Analysis' by presenting four key financial metrics formulas related to managing and analyzing receivables in a business context. The metrics include:

- **Debtor’s Ledger:** Categorizes receivables based on age with buckets for 0-31 days, 31-60 days, 61-90 days, and over 90 days. This helps organizations to track the timeliness of their receivables.
- **Days Sales Outstanding (DSO):** Calculates the average number of days that receivables remain outstanding before being collected. The formula divides accounts receivable at the end of a period by the total credit sales during that period, then multiplies by the number of days in the period.
- **Bad Debt Ratio (BDR):** Measures the percentage of receivables that are expected to be uncollectible. It is found by dividing uncollectible debts by total accounts receivable and multiplying by 100.
- **Collection Effectiveness Index (CEI):** Gauges the effectiveness of the collections department in securing payments from debtors. The formula involves the beginning receivables, minus the ending receivables and credit sales, divided by the beginning receivables minus credit sales, and multiplied by 100.

### Graphical Look

- A large, dark blue header title with the text "Receivables Performance Analysis" followed by a subtitle in lighter blue.
- Four shield-shaped icons, each with a different graphic symbolizing the associated financial metric.
- Next to each icon is a titled text box with the formula for the corresponding metric displayed: "Debtor’s Ledger," "Days Sales Outstanding," "Bad Debt Ratio," and "Collection Effectiveness Index."
- The formulas are written out with a combination of text and mathematical symbols within curly braces to signify the calculation steps.
- Each section has a light background and is outlined with a blue border.

### Use Cases

- Financial analysis presentations to convey key metrics for evaluating the effectiveness of accounts receivable management.
- Training sessions for finance teams to understand and compute fundamental receivables performance metrics.
- In a financial reporting meeting, to explain the current status and trends of accounts receivable.
- During a strategic planning session, to assess the financial health and credit management practices of the company.
- As part of a training or educational session for new finance or accounting employees, to introduce the key metrics used in receivables management.
- For a performance review with stakeholders, demonstrating the effectiveness of the credit and collections policies in place.