The-definition.com

Definition

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

  • Boiler and machinery insurance
    Boiler and machinery insurance is a commercial insurance that covers damage caused by ...
  • Loan participation
    Loan participation is the agreement under which a bank will share a large loan with one ...
  • Backdating
    Backdating in the context of mutual funds, a feature allowing fundholders to use an earlier ...
  • Discount rate
    Discount rate is the interest rate that the Federal Reserve changes banks on discount ...
  • Cross Rate
    In calculating a spot or future price between two currencies, reference to their respective ...