NET RECEIVABLES Definition

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NET RECEIVABLES are a companys accounts receivable (money owed to the company) minus any provisions for bad debts. A firm with a sustainable competitive advantage shows a lower percentage net receivables to gross sales than their competitors, i.e. a firm with a sustainable competitive advantage need not be generous with credit.

Learn new Accounting Terms

TIC/EBIT is one of the earnings multiples ratios used in determining company value.

ARREARS is an unpaid overdue debt, or the state of being behind in payments, e.g. an account in arrears.

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