accounts receivable turnover

(redirected from Receivable Turnover)

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 ?
In addition, the Group has high operating efficiency, with trading accounts receivable turnover days recorded 28 days.
Poor ratio analysis--that is, low accounts receivable turnover, negative current ratio, high debt service coverage, low days of cash on hand;
The accounts receivable turnover (days), inventory turnover (days), net working capital turnover rate, and return on assets indicators were used to measure the effectiveness of the working capital management.
a) The accounts receivable turnover is calculated as annual net sales on account divided by average annual accounts receivable.
The company's consultant brought in Amerisource to boost cash flow, billing, credit management and accounts receivable turnover.
Although the accounting changes had the least impact on the receivable turnover and the average collection period, these ratios showed improvements.
Accounts receivable turnover indicates how quickly the company collects money owed by its customers.
Finally, long payment terms slow accounts receivable turnover, reducing asset turnover.
These might include activity ratios like receivable turnover, inventory turnover, days sales outstanding (DSO), gross margins, income from operations as a percent of sales or net income as a percent of sales.
Annual sales volume, average invoice size, longevity of factor-company relationship, accounts receivable turnover, historical dilution rate, and concentration all impact the terms of factoring.
Has accounts receivable turnover decreased during a period of increased sales?
Referred to as "asset or accounts receivable turnover," the latter answers the questions: How quickly are capital assets turned into sales revenues?