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.

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.
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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.
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.
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.
However, there are a number of meaningful measures that are readily understood and should be used as a basis for disclosure, such as inventory and accounts receivable turnover.
Parent and subsidiary firms did not significantly differ in their accounts receivable turnover ratios (total sales over total accounts receivable) except for those in vertical keiretsu.
More than 61% of businesses surveyed said their top priority is to expedite accounts receivable turnover to accelerate cash flow.
Those who may be interested in the new product could include customers in the consumer goods sectors who wish to effectively minimize or even eliminate bad debt losses, outsource back office accounts receivable management, improve accounts receivable turnover and increase access to working capital, he added.

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