Accounts Receivable Ratio Analysis to Assess Uncollectable Accounts Receivable at CV PC

Abstract

This study aims to analyze the accounts receivable ratio to assess uncollectible receivables at CV PC during the 2023–2024 period. The research employs a qualitative method, and the validity of thedata is ensured through data triangulation from various sources, including interviews, documentation, and the company’s financial statements as data collection methods. The collected data were used to analyze uncollectible receivables and the company’s efforts in managing them. The results of the study indicate that the accounts receivable arrears ratio increased from 0.07% to 0.11%, while the collection ratio declined from 92.90% to 89.39%. This decrease in the collection ratio highlights the need to improve the effectiveness of the collection process to maintain optimal receivables management performance. Nevertheless, the risk of uncollectible receivables remains relatively low. Internal factors, such as delays in payments from third parties, as well as external factors, including tax policies, affect customers’ ability to settle their receivables. The role of CV PC in conducting routine monitoring, coordinating among departments, and maintaining communication with customers has proven essential in ensuring financial stability and minimizing potential losses arising from overdue receivables. This study suggests that the company should enhance the effectiveness of its collection process, establish clear receivable limits, and regularly monitor receivable ratios as preventive measures. impulsive purchases in the digital marketplace.