Receivable turnover ratio

Accounts Receivable Turnover Ratio
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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.

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 ratio.

The receivable ratio is total credit sales divided by accounts receivable. Receivable turnover ratio indicates how many times the receivables portfolio has been collected during the accounting period.

See also: Accounts receivable, Receivable Turnover, Turnover, Turnover Ratio, Market