Receivables Turnover Calculator | Sample Business Plan
Receivables Turnover Calculator
Receivables Turnover Formula
Receivables Turnover =
Net Credit Sales / Average Account Receivables
What is Receivables Turnover?
Receivables Turnover is used by companies to evaluate how well they choose their customers (in terms of who they extend credit to) and how well they collect their debts. A high ratio means that the company does well collecting debts, or that they work primarily off a cash sales basis.
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