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Receivables Turnover Ratio Calculator

LAST UPDATE: September 1st, 2018

Calculator

What is the Receivables Turnover Ratio?

Receivables turnover ratio is a measurement of how quickly a company collects on their account receivables.

Formula

Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable

Example

A company has net credit sales of $3,000 and average accounts receivable of $3,500.

Receivables Turnover Ratio = $3,000 / $3,500 = 0.86

Therefore, this company has a receivables turnover ratio of 0.86.

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