Financial statement analysis

C

CFready

New member
Joined
Jun 18, 2026
Messages
0
Reaction score
0
Hello, I got a question on reading # 34 (FRA) on the CFA book. For question #2 it states that Galabos Corp average receivable collection period is 19 days. Wouldn’t that be the receivable turn over? Why did they make 19 days the days of sales outstanding?
Thank You.
 
365/19 = 19.2.
So if the receivables turnover is 19, the number of days of receivables is about 19 days.
Coincidence.
 
Thank you both for the answer. I wasn’t sure if I could post the full question here, (dont remember if that is against the CFA code of ethics). For some reason I kept thinking average receivable collection period is the Receivable turnover. So I kept going over the equation, and I wasnt sure why they made average receivable collection period the days sales outstanding. Now that I am going back over it, along with your answer, it is clear.
Thank ya
 
You must log in or register to reply here.
Back
Top