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If the company sales were stable or improving than this could be better collection which is good indication and will improove the liquidity position of company, else this can be due to decrease in sales, Large debtors being calssified as bad and written off which is a bad indication and can have serious impact oon working capital of the company.
Well, if the company sales were stable or increased over the year, then the ratio decreased for better collection or decrease the policy of account receivable period.
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