Accounts Receivable Turnover Ratio - Definition - Meaning - Formula - Example - Analysis - Importance
Here we discuss about Accounts Receivable Turnover. Previously we studied about Inventory Turnover . You may also be interested in Accounts Receivable Questions And Answers First of all, we know about what is Accounts Receivable Turnover Ratio. Note: If you don’t know about Accounts Receivable that is a Current Asset , then check out this article as well. Accounts Receivable Turnover Definition A nd Accounts Receivable Turnover Meaning Accounts Receivable Turnover means that Accounts Receivable Converted Into Cash. So, this ratios shows that how efficient is the company to collect Debt due from its customers within the Current Accounting Period. In other words, how many times the company takes to receive Cash From its customers for the goods sold or services rendered in the Specified Accounting Period. This ratio is also known as Debtors Turnover Ratio In British Accounting Style. Mathematically, it is the ratio of Net Cre...