accounts 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Ample unrestricted cash of KRW137 billion implies 97 days cash on hand and accounts receivable turnover reached 58x in 2017.
Accounts receivable turnover ratio (X13) and accounts receivable in days (X14) indicate whether or not the company has difficulties with collecting its receivables.
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;
* Accounts Receivable Turnover: It shows the ability of collecting debts of the business.
Which of the following effects does this scheme have on the accounts receivable turnover?
Therefore, we select the inventory turnover ratio and accounts receivable turnover ratio to measure working capital efficiency.
* Are reports prepared to adequately monitor performance of the accounts receivable function (aging analysis, percentage of delinquent accounts in each aging category, accounts receivable turnover or days sales outstanding ratios, bad debt and its recovery, etc.)?
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.
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.

Full browser ?