Receivables turnover ratio means how fast a company collects its accounts receivable. The lower ratio means the greater is the company’s liquidity
Formula:
Receivables turnover ratio = (A) Net Credit Sales / (B) Average net receivables
Receivables turnover ratio means how fast a company collects its accounts receivable. The lower ratio means the greater is the company’s liquidity
Formula:
Receivables turnover ratio = (A) Net Credit Sales / (B) Average net receivables