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FSA Analysis 5
FSA Analysis 5
Dynamics Comments
Accounts Receivable Turnover Accounts Payable Turnover Both have been improving its AR Turnover over
the last few years, however Unilever’s indicator
seems to outperform Reckitt, suggesting more efficient
collection of outstanding balances from the clients.
10.1 2.0 2.0 2.1
7.9 8.7 Average trade receivables for both have been on a
6.4 6.8 7.1
1.1 1.1 1.0 declining trend due to a sharp decrease in 2020 due
to Covid-19 crisis. In 2021, the receivables started
recovering as people returned to pre-crisis social
2019 2020 2021 2019 2020 2021
activities.
Unilever Reckitt Unilever Reckitt
AP Turnover stayed mostly flat for both companies,
without showing any significant changes. Unilever’s
Cash Conversion Efficiency (CCE) Ratio AP Turnover has been historically twice as high as
Reckitt’s demonstrating the company’s efficiency at
paying its suppliers and short-term debts.