The Effectiveness of The Measurement of Trade Receivables Through The Ratio of The Turnover of Receivables And The Average Age Ratio of Receivables

Management decisions are very important decisions in the survival of the company, especially in regulating the effectiveness of receivable management. The purpose of this study is trying to analyze how to build effective accounts receivable management models through the use of receivable turnover ratios, the average age ratio of receivables, arrears ratios, and the ratio of billing in hospitals. Therefore, this research was developed under the umbrella of management theory, by further analyzing the trade receivable management strategy based on the ratio of receivables, and the average age ratio of receivables. The quantitative approach is carried out using the calculation of financial ratios, with a descriptive qualitative approach. Analysis of financial statements is based on financial reporting records for 5 consecutive years, with a range of 2017-2021. This study empirically shows that to implement an effective management procedure and control system, an internal teamwork program that contains clear containing activities, targets, outputs, and time of program implementation. These results make it possible to understand the major contribution of managing trade receivables in minimizing the risk of business losses, as well as highlighting the importance of the active role of internal stakeholders in the preparation of effective trade receivable management strategies by basing findings through the perspective of financial ratios.