Question-and-Answer Session
Thank you. [Operator Instructions]. Your first question will come from the phone lines. Barry Bannister, representing Stifel Nicolaus, please proceed.
Barry Bannister - Stifel Nicolaus and Company, Incorporated
Hi Tim, nice quarter.
Timothy W. Sullivan - President and Chief Executive Officer
Thank you.
Barry Bannister - Stifel Nicolaus and Company, Incorporated
With the installation of the BPS, what sort of working capital percent of sales and inventory turnover specific targets do you have and what kind of timeframe?
Timothy W. Sullivan - President and Chief Executive Officer
Well, let me... Craig may want to give a little more precise answer. From a working capital standpoint, again, I think it's not an issue for us. Matter of fact, working capital becomes an issue for us more in a down market than in an up market because of our terms of payment. We remain cash neutral on anything that we do sell, and in some instances cash positive. So as we ramp up our capability, that will not change. Matter of fact, where we do have working capital issues is more in the down market where we are actually billing [ph] for inventory. But right now, we are well ahead of any of those types of needs.
Craig R. Mackus - Chief Financial Officer and Secretary
As I mentioned on my talk, on inventory turns, which is one of things we monitor, it is at around 3 turns. We have talked in the past about trying to have a goal of 3.5 turns, and that would still be our goal. And we are in a position now where we are trying to protect steel and other cost increases where we are carrying more inventory than we normally would. We also... are also trying to make sure we ensure the accelerated deliveries we have going. So because of supply chain issues, we are carrying a little bit more inventory. But I think we pretty well have added the inventory to a level where we think we can effectuate our manufacturing scale going forward.
So we really wouldn't expect that to continue from that level and it's been more stabilized. And as sales go up, as OE sales go up that have a percentage of completion accounting, that should affect our inventory turns to get back to where we were a couple of years ago, which is 3.3, 3.4.
On the receivables side, we sort of have a mismatch this quarter. You probably saw on the liability side of the balance sheet a fairly large increase in advanced payments. So it's primarily in the longwalls where we have some customers who have given us a significant amount of cash that's allowed us to work on their product. And we're actually ahead of the game, so that's why we had a larger liability within some other customers who have for various reasons, we have not received the same payment terms. So we've more, what I'd call, unbilled receivables right now.
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