Finance

Receivables Turnover Ratio Calculator

Sales ÷ avg receivables.

Calculated Output

Receivables turnover (x) 6.25

Step-by-Step Breakdown

1. Values used:

2. Credit sales = 500,000 $

3. Avg accounts receivable = 80,000 $

4. Receivables turnover = Credit sales / Avg accounts receivable = 500,000 / 80,000 = 6.25x

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Frequently Asked Questions

Higher better?

Yes — faster collection.