Formula to calculate Accounts
receivable turnover ratio:
Accounts Receivable Turnover Ratio
= annual credit sales / average accounts
receivable
Accounts
Receivable turnover ratio definition and explanation:
This is the ratio of the number of
times that accounts receivable amount is collected
throughout the year.
A high
accounts receivable turnover ratio indicates a tight
credit policy.
A low or
declining accounts receivable turnover ratio indicates a
collection problem, part of which may be due to bad
debts.
The accounts receivable turnover ratio is included in
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The accounts receivable turnover ratio is listed in
our efficiency
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