Receivables Turnover Ratio Defined: Formula, …
https://www.investopedia.com/terms/r/receivableturnoverratio.asp
Let's say Company A had the following financial results for the year: 1. Net credit sales of $800,000. 2. $64,000 in accounts receivables on Jan. 1 or the beginning of the year. 3. $72,000 in accounts receivables on Dec. 31 or at the end of the year. We can calculate the receivables turnover ratio in the following way: … See more High Ratios A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that i… Low Ratios
High Ratios
A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that i…
Low Ratios
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