Why is It Essential to Track the Bad Debt to Sales Ratio?

Tracking the Bad Debt to Sales Ratio is essential as it provides insight into the effectiveness of credit policies and the overall financial health of a business. By monitoring this ratio over time, companies can identify trends, assess risk levels, and make informed decisions to optimize credit management strategies and ensure long-term profitability.

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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Enterprise Receivables Management System to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.

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