accounts receivable turnover

(redirected from Receivables Turnover Ratios)

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 ?
Table 5 shows the results of the robust regressions that explain firms' receivables turnover ratios by firm characteristics, the medium and the heavy industry dummies, the time variable, the "Contractionary" dummy, and the Leverage *Contractionary interaction term.
0570 TABLE 5 IMPACT OF MONETARY POLICY ON RECEIVABLES TURNOVER RATIO Regression Analysis DV: Receivables Turnover IVs Model 1 Model 2 Model 3 Intercept 1.
This would lead to a lowered EV for sales and cost of sales as well as lowered inventory and receivables turnover ratios.