ISBN: 9781332977857 - the probability distribution of future bad debt losses for a given portfolio of accounts receivable (classic reprint) (3 resultados)

PAP. Condición: New. New Book. Shipped from UK. Established seller since 2000.

PAP. Condición: New. New Book. Shipped from UK. Established seller since 2000.

Paperback. Condición: New. Print on Demand. This book explores a critical but often overlooked aspect of business finance: the valuation of accounts receivable. While companies strive to maintain strong credit granting policies and efficient collection practices, a certain percentage of receivables will inevitably become uncollectible, resulting in bad debt losses. The author, recognizing the inherent randomness of this process, proposes a revolutionary approach by introducing the concept of the probability distribution of future bad debt losses. This groundbreaking concept shifts the focus from a single point estimate for potential losses to a more comprehensive understanding of the range of possible outcomes. The book delves into the mathematical framework for deriving this distribution, taking into account the age of receivables, the likelihood of default, and the amount potentially lost per default. This innovative approach allows financial professionals to move beyond simple, historical-based estimates and to instead quantify the risk associated with bad debt losses. By understanding the probability distribution, businesses can confidently establish allowances for doubtful accounts, ensuring that adequate funds are set aside to cover potential losses. Ultimately, this book provides a powerful tool for managing and mitigating the risks associated with accounts receivable, offering a more sophisticated and insightful approach to financial planning in the world of business. This book is a reproduction of an important historical work, digitally reconstructed using state-of-the-art technology to preserve the original format. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in the book. print-on-demand item.…