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Receivables Turnover |
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Receivables Turnover The average amount of time it takes for a business to collect on its accounts receivable. This is calculated by taking the amount in accounts receivable over a given period and dividing into the total amount in credit sales over the same period. The shorter the duration before collection of account receivable, the more likely a business is to remain solvent. The receivables turnover is also a way to determine how a business' credit risk compares to its competitors. It is also called accounts receivables turnover. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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