Identify characteristic of companies with accounts turnover

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Reference no: EM13900265

The accounts receivable turnover ratio will vary across companies, depending upon the nature of the company's operations. For example, an accounts receivable turnover of six for an  Internet Services Provider is unacceptable but might be excellent for a manufacturer of specialty milling equipment. A list of well-known companies is listed  below.

Alcoa

The Coca-Cola Company

Kroger

AutoZone

Delta Air Lines

Procter & Gamble

Barnes & Noble

Home Depot

Wal-Mart

Caterpillar

IBM

Whirlpool

1. Using the PricewaterhouseCoopers Web site, https://edgarscan.pwcglobal.com, look up each company by entering its name. Click on each company's name and then scroll down to the bottom of the page to "Set Preferences." Select "Receivables Turnover" in the Ratios list. Then click "Save Preferences."

2. Categorize each of the preceding companies as to whether its turnover ratio is above or below 15.

3. Based upon (2), identify a characteristic of companies with accounts receivable turnover ratios above 15.

Reference no: EM13900265

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