Trade Receivables
Short definition
Trade receivables are amounts due from customers on credit sales. Revenue has been accrued; cash has not yet arrived. The allowance for expected credit losses cuts the net balance.
Detailed explanation
Split gross, allowance and net. Ageing shows current versus past-due buckets; DSO collapses that distribution into one average. FX receivables carry currency risk; longer tenor stacks credit and FX risk.
Assignment, factoring and L/Cs change who holds the receivable and the covenant definition of “receivables”. Consignment and contract assets are different lines.
Why it matters for the CFO
Facilities and the cash budget are sized off the receivable stock. Concentration (one customer) raises expected loss independently of DSO.
How to read it
Receivables / sales is the same information as DSO, in amount. The allowance ratio reveals collection quality. There is no universal cap; contract terms and sector set it.
Numerical example
Gross trade receivables 88 mn TL, allowance 8 mn TL → net receivables = 80 mn TL.
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Definitions are educational. They are not investment, credit or tax advice.