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Receivables Turnover

What is the definition of Receivables Turnover?

This ratio measures the number of times, on average, receivables are collected during the period. It can be used to determine whether the company is having trouble collecting on sales it provided customers on credit.


Stockopedia explains Receivables Turnover...

It can be used to determine whether the company is having trouble collecting on sales it provided customers on credit. While it is best calculated by dividing sales made on credit by average accounts receivable, we have used total sales since many companies do not disclose how much of the sales were made on credit.