NAPL Performance Indicators Alert: Receivable Days Outstanding

By Andrew Paparozzi
In April 9, 2010

Accounts receivable averaged 48.1 days during the six months ending in January for NAPL Performance Indicators participants. Although below the peak of 48.6 days during the six months ending last June, that is the third consecutive increase since last fall. (See chart below.)

As we continue into recovery, it is vital that we do not allow improved economic conditions to erode the lessons learned during the recession. The need to stay on top of receivables is obvious during the depths of recession. But the value of keeping that same diligence during the recovery is often disregarded—even though a failure to keep receivables current during recovery can result in a lack of cash to fund capital investment and to take advantage of the mending business environment. As NAPL has long warned, recovery complacency can be just as dangerous as the recession itself. How is your receivables balance trending?

Receivables Apr10

Andrew Paparozzi

Epicomm's Andrew Paparozzi, Vice President/Chief Economist, is well-known for his accurate and thoughtful discussions on the economy and US commercial printing industry. A foremost author and speaker on economic business trends in the printing industry, Paparozzi heads Epicomm's Printing Economic Research Center.

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