This can be either negativeor positive compared to Yacht Industry average which the receivablesturnover is 9,82 (Days sales in receivables = 37,16 days), even better than the upper quartilewhich is 14,11(Days sales in receivables = 25,87)because
ECY’s receivables turnover
are too high.
This can be an indicator that ECY’s credit collection poli
cies are tighter, so there are risks of losing customers to the competitors. But it also means that ECY do well collecting cash quicklyfrom customers and be able to generate cash flow to keep up with current liabilities.