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Receivables Turnover

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Accounts Receivable Turnover
The average amount of time it takes for a business to collect on its accounts receivable. This is calculated by multiplying the amount in accounts receivable by the number of days in a given period and dividing into the total amount of credit sales. Accounts receivable turnover is a way to determine how a business' credit risk compares to that of its competitors.

receivables turnover


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Maximizing receivables turnover and collectibility requires strategy to support the premise that customers want to pay.
The measures of operational efficiency include days of sales outstanding, inventory turnover, days cost of goods sold in inventory, asset turnover, and net receivables turnover flow.
 
 
 
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