Receivables turnover ratio

Receivables turnover ratio

Total operating revenues divided by average receivables. Used to measure how effectively a firm is managing its accounts receivable.

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.
References in periodicals archive ?
3 Receivables turnover ratio index X 2 Inventory turnover ratio Current asset turnover ratio Fixed asset turnover ratio Total asset turnover ratio Profitability 0.
The experts identified nine indicators they considered the most appropriate for evaluating the efficiency of separate Lithuanian economic sectors, namely 1) gross profit margin, 2) profitability ratio, 3) return on assets ratio, 4) debt ratio, 5) leverage ratio, 6) current ratio, 7) receivables turnover ratio, 8) fixed assets turnover ratio, 9) equity turnover ratio.
The receivables turnover ratio indicates how rapidly an enterprise receives payments for goods and services delivered (sales / amounts receivable in one year).
That may be caused by relatively high values of gross profit margin, current ratio, and receivables turnover ratio.
Furthermore, both construction and real estate sectors experienced rather low values receivables turnover ratio suggesting delay in settlements peculiar for these sectors.
In accordance with expert evaluation and correlation analysis, the following financial ratios were chosen for analysis: 1) gross profit margin, 2) return on assets ratio, 3) leverage ratio, 4) current ratio, 5) receivables turnover ratio, 6) equity turnover ratio.
Delta's receivables turnover ratio, a measure of receivable liquidity, was lower than the industry average.