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Financial Sheet Analysis of Trade and Other Receivables

Attached are two companies' annual reports. Please look through these two annual reports and discuss the key components and features of trade and other receivables.


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Below is my analysis of Accounts Receivables for both corporations. In my career, I have specialized in revenue cycle management, so I approached this solution with that practical experience in mind. Please note all my page references below are based on the page of the financial statements (not the pdf page).

Premier Investments Limited ("Premier"):

Per balance sheet (page 29), trade and receivables doubled from 2013 to 2014. This doubling occurred in both long and short-term receivables, although the higher amounts are in Current Receivables for Sundry's. Looking at their income statement, it is not immediately clear to why that is since sales from 2013 to 2014 didn't increase by that much. It would be good to know what the organization's typical AR turnover rate is. Maybe it would be clearer if we were given the 2012 sales. Perhaps there simply were more sales in 2014 (or the end of 2013 depending on the AR turnover rate) that were put on account instead of paid in cash. You will also see the large increase in ...

Solution Summary

This solution provides financial sheet analysis of trade and other receivables for two organizations.