Receivable Turnover
The latest 12 months' sales divided by the average receivables from the latest two quarters. It measures the number of times, on average, receivables are collected during a given period.
Account Receivable Turnover = Annual Credit Sale / Average Accounts Receivable
RELATED CATEGORIES
Accounting ...
Accounts Receivable Turnover
Calculate Accounts Receivable Turnover with our free online Accounts Receivable Turnover Calculator.
accounts receivable turnover investment & finance definition
Net sales divided by average net accounts receivable.
Accounts Receivable Turnover Ratio
Share
What is the Accounts Receivable Turnover Ratio?
Receivable Turnover Ratio is one of the accounting activity ratios, a financial ratio. This ratio measures the number of times, on average, receivables (e.g. Accounts Receivable) are collected during the period.
Accounts receivable turnover
The ratio of net credit sales to average accounts receivable, which is a measure of how quickly customers pay their bills.
Accounts receivable turnover and Age of accounts receivable
In any business the ability to convert accounts receivables (or credit sales) into cash is an important measurement of management's efficiency.
Accounts receivable turnover
A measure of how quickly customers pay their bills. Accounts receivable turnover is sales for the period divided by the average accounts receivable. Also called receivables turnover.
Accounts Receivable Turnover in Days
Indicates the liquidity of the company's receivables in days.
Formula
Average Gross Receivables
Annual Net Sales / 365 ...
accounts receivable turnover The average duration of an account receivable, equal to total credit sales divided by accounts receivable. accredited investor An investor which meets a certain list of Securities and Exchange Commission...
Abnormal returnsRelated: Excess returns Accounts receivable turnoverThe ratio of net credit sales to average account receivable, a measure of how quickly customers pay their bills.
ratios Ratios used to judge the adequacy of liquid assets for meeting short-term obligations as they come due, including (1) the current ratio, (2) the acid-test ratio, (3) the inventory turnover ratio, and (4) the accounts receivable turnover ...
Activity Ratios: Accounts Receivable Turnover, Inventory Turnover, Total Asset Turnover
Leverage Measures: Debt-Equity Ratios And Fixed-Charge Coverage Ratio
Profitability Ratios: Net Profit Margin, Return On Assets (ROA), Return On Equity (ROE) ...
Efficiency Ratios or asset turnover ratios give you an understanding of how effective a company is using their current assets. Receivable turnover, average collection period and inventory turnover are all different types of efficiency rations.
A long collection period may indicate higher risk in collecting the account; it ties up funds that could be invested elsewhere or used to make timely payments. It equals the number of days in a year divided by the Accounts Receivable Turnover.
 See also: Turnover, Accounts receivable, Average, Cash, Period
  
|
RSS
