Term of the Day: Receivables Turnover Ratio

	View online | Add Investopedia to safe senders list
	INVESTOPEDIA Term Of The Day September 25, 2015 Receivables Turnover Ratio An accounting measure used to quantify a firm's effectiveness in extending credit and in collecting debts on that credit. The receivables turnover ratio is an activity ratio measuring how efficiently a firm uses its assets. Receivables turnover ratio can be calculated by dividing the net value of credit sales during a given period by the average accounts receivable during the same period. Average accounts receivable can be calculated by adding the value of accounts receivable at the beginning of the desired period to their value at the end of the period and dividing the sum by two. The receivables turnover ratio is most often calculated on an annual basis, though this can be broken down to find quarterly or monthly accounts receivable turnover as well. Breaking It Down: Receivable turnover ratio is also often called "accounts receivable turnover," the "accounts receivable turnover ratio" or... Read More Related to "Receivables Turnover Ratio" Receivables Turnover Ratio - Video The receivables turnover ratio is a measure used to quantify a firm's effectiveness in extending credit as well as... Read More Dynamic Current Ratio: What It Is And How To Use It In this article, we'll examine the "dynamic current ratio" to assess a company's liquidity status instead of the... Read More Asset Turnover Ratio - Video The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue... Read More Recently Added Definitions Maturity The period of time for which a financial instrument remains outstanding. Maturity refers to a finite time period at... Read More Bank Deposits Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at a... Read More Related Definitions Asset Turnover Ratio Accounts Receivable Subsidiary Ledger Overall Turnover Accounts Payable Subsidiary Ledger Acid-Test Ratio Past Terms of the Day Price-Earnings Ratio - P/E Ratio Debt/Equity Swap Debt Ratio Current Ratio Maintenance Margin You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Unsubscribe From All | Manage Profile Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: