Weyerhaeuser has a higher accounts receivable turnover ratio, indicating that it collects accounts receivable more quickly than does Georgia-Pacific. While both companies’ ratios have improved, Georgia-Pacific’s best turnover rate during the three years in question was lower than the worst year for Weyerhaeuser. Converting the turnover ratio to days accounts receivable outstanding yields the following:
Days Accounts Receivable Outstanding Georgia Pacific 40.2
Weyerhaeuser 31.8
Year 3 Year 4
36.9 32.4 31.7 26.5
Year 2