SWM - Mark Moore

25 Accounts Receivable Turnover 20 15 10 5 SWM AOI UVV Industry Average 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2008SWM 6.729785 6.711423 7.370079 7.373757 8.826437AOI 4.16139 5.928734 6.584342 9.088303 11.11346UVV 14.0983 19.05726 16.51311 7.687575 10.06922IndustryAverage8.329826 10.5658 10.15584 8.049879 10.00304Days Sales OutstandingDays Sales Outstanding gives a more in-depth look at how adequately firms are able tocollect its receivables and enforce its credit policy. The only difference between day’s salesoutstanding and accounts receivable turnover is that the days sales outstanding ratio providesthe firm or investor with an amount in days it takes to collect its receivables. The ratio can befound by taking the number of days in a year, 365, and dividing it by the firm’s previous year’saccounts receivables turnover. In comparison to the previous ratio, accounts receivablesturnover, where a high ratio is preferred, a small number of days are favored in this109