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Receivables are debts owed to the company by its customers, for goods or services that the customer has received, but not yet paid for. Many companies with offer these loans to customers to facilitate sales. Rising receivables relative to sales may indicate that the company is using these loans to encourage customers to buy now, or financing company inventory into an external distribution system.
The effect is to overstate sales and increase the chance that sales growth will fall in the future. The GEARS report will make a reference to the effect of changing receivables, if those changes have been important to making a successful investment decision in the record of the company.