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What is meant by receivable turnover ratio?

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Question added by SREEDEVI SUNILKUMAR , Business finance officer , Emirates Airline
Date Posted: 2014/04/09
Tareq Obeidat
by Tareq Obeidat , Chief Accountant , Etmam International Co

It is one simple measure to compare a company's sales to its accounts receivable ,the result is the accounts receivable turnover ratio :

Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable

Khalid Noor
by Khalid Noor , Accounting Manager , FedEx

Receivables Turnover Ratio = Total Sales / Average receivables

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