Bulletin HASKINS & SELLS 71
Aging Versus Ratios
THE interest of recent years in ratios
has called forth considerable discussion.
How much has been based on
theory and how much on practical facts,
of course, is difficult to determine. One
ratio suggested, namely, that showing the
relation of receivables to merchandise,
has been rather consistently rejected by
practical accountants because to them its
conception appears illogical.
The ratio of receivables to sales has
been more favorably received since, when
used on a comparative basis, it will show
the trend with respect to the amount of
