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Gentry-De La Garza Model

What is 'Gentry-De La Garza Model'

A different way of managing account receivables, proposed by college professors James A. Gentry and Jesus M. De La Garza in the mid-1980s. The Gentry-De La Garza model gives three reasons as to why accounts receivable balances may increase: sales pattern effects, collection experience effects and joint effect. Together they equal the difference between the receivables balances and allow companies to increase the speed of cash inflows and reduce the speed of cash outflows

Explaining 'Gentry-De La Garza Model'

Because it separates receivables into three quantifiable categories, the Gentry-De La Garza model allows financial managers to instantly detect whether an increase in receivables is due to rising sales levels or faulty credit controls. Eroding collections may be a sign that the company is not forceful or persistent enough in collecting overdue accounts or that credit is being granted too freely. Being able to recognize these issues right away helps a company refine its processes and become more efficient.


Further Reading


Monitoring accounts receivable using variance analysis
www.jstor.org [PDF]
… A Variance Analysis Model The expression variance analysis is usually consid- ered in a statistical context as the sum of … Variance models are primarily … According to the Gentry-De La Garza [2] algorithm, the joint effect is zero in Exhibit 2 for January and February, but positive for …

Streamlining the management of corporate accounts receivableStreamlining the management of corporate accounts receivable
www.rtj-mirea.ru [PDF]
… A Variance Analysis Model The expression variance analysis is usually consid- ered in a statistical context as the sum of … Variance models are primarily … According to the Gentry-De La Garza [2] algorithm, the joint effect is zero in Exhibit 2 for January and February, but positive for …

МОНИТОРИНГ УПРАВЛЕНИЯ ДЕБИТОРСКОЙ ЗАДОЛЖЕННОСТЬЮ ПРЕДПРИЯТИЯМОНИТОРИНГ УПРАВЛЕНИЯ ДЕБИТОРСКОЙ ЗАДОЛЖЕННОСТЬЮ ПРЕДПРИЯТИЯ
elibrary.ru [PDF]
… A Variance Analysis Model The expression variance analysis is usually consid- ered in a statistical context as the sum of … Variance models are primarily … According to the Gentry-De La Garza [2] algorithm, the joint effect is zero in Exhibit 2 for January and February, but positive for …

Hauptkomponenten des Working Capital-Managements und ihre intra-und interorganisationalen VerknüpfungenHauptkomponenten des Working Capital-Managements und ihre intra-und interorganisationalen Verknüpfungen
link.springer.com [PDF]
… A Variance Analysis Model The expression variance analysis is usually consid- ered in a statistical context as the sum of … Variance models are primarily … According to the Gentry-De La Garza [2] algorithm, the joint effect is zero in Exhibit 2 for January and February, but positive for …

Grundlagen des Working Capital ManagementsGrundlagen des Working Capital Managements
link.springer.com [PDF]
… A Variance Analysis Model The expression variance analysis is usually consid- ered in a statistical context as the sum of … Variance models are primarily … According to the Gentry-De La Garza [2] algorithm, the joint effect is zero in Exhibit 2 for January and February, but positive for …



Q&A About Gentry-De La Garza Model


How does joint effect affect an account receivable balance?

Joint effect causes increases and decreases in accounts payable balances depending on whether collections have increased or decreased since last year.

How do you spell "gentry"?

The word is spelled "gentry".

What are examples of people who are considered gentry?

Examples of people who are considered gentry include landowners and upper levels of the clergy.

Why are accounts receivable balances increasing?

Accounts receivable balances may increase because of sales pattern effects, collection experience effects and joint effect.

Where did the term "gentry" come from?

The term "gentry" came from Old French, which means high born, noble or gentle families of long descent who in some cases never obtained official right to bear a coat of arms. They were also called gentleman farmers. In modern day England, they refer to those with a landed estate (see landed estates). In modern day United States, they refer to those with land ownership but no peerage title (see peerages in the United Kingdom). It can also refer to all individuals in society who have inherited wealth or power from their ancestors as opposed to earning it on their own merit (see meritocracy). A person may not necessarily belong to this class if he/she has earned his/her money through hard work or other means than inheritance. Also known as upper classes or high society depending on geographic location and time period. This class was often referred to as nobility when it was composed primarily by royalty and aristocracy; however today this class would more likely be called wealthy elites due its composition being mostly made up by business owners, politicians and celebrities rather than royalty or aristocracy . This class is sometimes referred for short as simply 'the rich'.

What does it mean to be gentry?

To be gentry means to be well born, genteel and well bred.

How does collection experience affect an account receivable balance?

Collection experience affects an account receivable balance by causing it to either increase or decrease depending on whether collections have increased or decreased since last year.

What does the Gentry-De La Garza Model describe?

The Gentry-De La Garza Model describes a model of social stratification.

What is the Gentry-De La Garza model?

The Gentry-De La Garza model is a different way of managing account receivables.

How do sales pattern effects affect an account receivable balance?

Sales pattern effects can cause an increase in an account receivable balance if there has been a change in the number of units sold or if there has been a change in the average selling price per unit.