The Credit Asset of Enterprise Accounts Receivable Pricing Model

Table 1

Buyer’s solvency factors.

Category	Variable dimension	Variable name and symbol	Index meaning and calculation formula
Solvency	Safety	Asset-liability ratio ()	Capital strength and long term solvency,  = total liabilities / total assets
		Return on assets ()	Integrated operating strength,  = EBIT (earnings before interest and taxes) / total assets
	Fluidity	Current ratio ()	Short-term solvency,  = current assets / current liabilities
		Quick ratio ()	Liquid assets liquidity,  = quick assets / current liabilities
		Approximate accounts receivable turnover or credit sales multiple ()	Operating capacity,  = prime operating revenue / [(balance of accounts receivable at the beginning of the period + balance of accounts receivable at the end of the period) / 2]
	Efficiency	Income growth rate ()	Profitability development capacity,  = (income for the year / income for the previous year −1)  100%
		Profit growth rate ()	Current profitability,  = (profit for the year / profit for the previous year − 1)  100%

Note: and shows multiple collinearity; is removed after comprehensive comparison.