Accounts Receivable Turnover

Metadata

  • Id: acct_rcv_turn
  • Type: fundamentals
  • Subtype: ratios
  • Units: ratio
  • Decimal Points: 2
  • Currency Convertible: No
  • Tags: “accounts receivable turnover ratio”, “acct_rcv_turn”, “receivables turnover ratio”, “sales to receivables ratio”, “credit sales turnover ratio”

Description

Accounts receivable turnover ratio is a ratio that measures how many times a business can collect its average accounts receivable during the year. It helps to evaluate how efficiently a company is collecting revenue from its customers and using its assets. The formula for accounts receivable turnover ratio is:
Accounts receivable turnover ratio = Trailing 12 Month Sales / Average Account Receivable
Where: - Trailing 12 Month Sales is TM006, ttm_net_sales - Average Account Receivable is the average of the beginning balance and ending balance of BS004, bs_acct_note_rcv