Accounts Receivable Turnover Calculator

Collection Efficiency

Receivables turnover measures how often a business collects its average customer receivables during a period.

Formula: turnover = net credit sales / average receivables; collection days = period days / turnover.

Understanding Accounts Receivable Turnover

1. What This Calculator Measures

Receivables turnover measures how efficiently a business collects money owed by customers.

2. How the Calculation Works

The calculator divides net credit sales by average accounts receivable and estimates average collection days.

3. Formula or Rule Used

receivables turnover = net credit sales / average receivables.

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