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As a visitor to England, you as an American, have difficulty remembering to drive on the left side of the road as they do and to look in the opposite way before crossing the street. This illustrates
Accounts Receivable Turnover
A financial ratio that measures how efficiently a company collects revenue from its customers by dividing total net credit sales by the average accounts receivable.
Net Working Capital
This is a measure of a company's liquidity, calculated as the difference between its current assets and current liabilities.
Current Assets
Assets that are expected to be converted into cash, sold, or used up within one year or within the normal operating cycle of the business, whichever is longer.
Current Liabilities
A company's debts or obligations that are due within one year.
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