Ratio obtained by dividing total credit sales by accounts receivable. The result indicates how many times the receivables have been collected during the period covered by the sales. It's a measure of how well the company is collecting it's accounts receivable.
ratio obtained by dividing total credit sales by accounts receivable. The ratio indicates how many times the receivables portfolio has been collected during the accounting period. See also ACCOUNTS RECEIVABLE; AGING SCHEDULE; COLLECTION RATIO.
Number of times accounts receivable sold rolls over during an accounting cycle.
See Summary of financial ratios
A figure used to measure how quickly customers pay their bills. It is calculated by dividing credit sales for a specific period by the average accounts receivable.
A measure of how quickly customers pay their bills. Accounts receivable turnover is sales for the period divided by the average accounts receivable. Also called receivables turnover.
Annual net sales divided by the end of year accounts receivable. Identifies the speed at which your business collects outstanding accounts.
The ratio of net credit sales to average accounts receivable, a measure of how quickly customers pay their bills.
Indicates the liquidity of the company's receivables. Formula Net Sales Average Gross Receivables
A measure used to determine a company's average collection period for receivables. Usually computed by dividing net sales (or net credit sales) by average accounts receivable.