Eu Yan Sang

[Musicwhiz]

how do u use this ratio? higher rec to rev is not a gd sign?

Apologies for not being clear about that one.

It's actually to compare growth of receivables versus growth of revenues, in % terms. If receivables are growing much faster than revenues it may show up as bad debts in the medium-term, or it might be that the Company is too aggressive in revenue recognition (read the AR for revenue recognition policies - some of these can be "manipulated" to a certain extent and companies engage in revenue smoothing - not EYS in particular, referring to companies in general).