Accounts receivable turnover

Accounts receivable turnover are the ratio of net credit sales to average accounts receivable, which is a measure of how
quickly customers pay their bills.

Accounts receivable turnover are an activity ratio that tells the number of times per year that the average accounts receivable is collected; computed by dividing net sales by average net accounts receivable.

Share it:  Cite

More from this Section

  • Expectations theory
    Expectations theory is the proposition that the interest rate on a long-term bond will ...
  • Serial Bonds
    Serial Bonds are bonds that mature at specified intervals. ...
  • Primary deposits
    Primary deposits are those deposits that bank collects from different surplus stakeholders ...
  • Net working capital concept
    Net working capital is the current assets out of total current liabilities. It is used ...
  • Customer privacy
    Customer privacy is the protecting the personal information that customers supply to their ...