Online stock filtering and screening by inventory turnover and receivables turnover
Cash flow is critical in running all businesses. Companies without healthy cash flow are very likely to go into financial trouble sooner or later.
In normal business operations, there are several factors that have great impact to the cash flow of the company, including:
- How fast can the company sell out its goods?
- How fast can the company collect the full payment from its customers?
- Weak sales
- Over-stocking (too much goods produced or brought in)
- Price is set too high
- Product quality is too low
- Low demand
- Strong sales
- Insufficient inventory (not a good sign)
- Price is set too low
- Product is good that customers are willing to pay for its price
- High demand
- Advanced (prepaid) collection - customer paid before receiving the goods.
- Cash term collection - customer pay upon goods delivery.
- Credit term collection - customer is given interest-free period to make payment within a timeline (normally 7-days, 14-days, 30-days, 60-days, etc.) after receiving the goods.