accounts receivable turnover

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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

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.

accounts receivable turnover

The number of times in each accounting period that a firm converts credit sales into cash. A high turnover indicates effective granting of credit and collection from customers by the firm's management. Accounts receivable turnover is calculated by dividing the average amount of receivables into annual credit sales. Also called receivables turnover. See also activity ratio, collection period.
References in periodicals archive ?
One key concern identified by the AG within PetroSA is debtors collection periods, which have increased, putting a strain on cash flows.
When the different collection periods were compared (rainy period, rainy/dry transition, dry and dry/rainy transition), it was found that for treatments (T1, T2 and T3), values for richness were higher during the rainy period and dry/rainy transition, and for T4 and Tc, during the rainy period and rainy/dry transition (Table 1).
The participants were wore an activity monitor continuously during three, one-week data collection periods between April 2013 and November 2014, Medical Daily reported.
Areas were delineated in a 3 x 2 factorial arrangement composed of three areas and two collection periods (August and November of 2012), with three repetitions.
Findings indicated no significant difference in code rates (0.83 vs 0.98 per 1,000 patient days, p=0.3) during the two data collection periods. In a multicenter analysis of over 4,600 patients, Kim and colleagues (2013) also concluded RRTs did not reduce the mortality of patients following cardiac arrest.
While I'm a fan of recycling, and completely agree that landfill sites need to be reduced because they're are not only a blot on the landscape but a potential health hazard, I'm worried that extending bin collection periods could lead to all sorts of problems.
The results of the study show negative relations between receivable collection periods, inventory conversion period with firm's profitability.
The US Forest Service issues permits, but increasingly relies on a lottery, reduced collection periods and harvest limits.
In addition to significant cost savings, the advantages of Rocis over existing measurement techniques include wider daily coverage, reduced data collection periods, rapid mobilisation and better measurement resolution.
Participants visited the research facility for 2 data collection periods lasting 7 days each at 18 and 35 weeks ([+ or -]1 week) of pregnancy.
All leaf collection periods will last about two weeks.
The ratings, however, also reflect the firm's long and increasing collection periods, rising attrition rate and pressed profit margins.

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