Calculating Accounts Receivable Turnover is a key metric for any business. It reflects the number of times a business collects on its accounts receivables during a period of time, and provides insight into how effectively the company is managing its cash flow. To calculate this figure, businesses must first subtract their beginning accounts receivable balance from their ending balance, divide it by average accounts receivable balances during the period, and then divide this figure again by total sales made during that same period. This calculation offers valuable information to business owners and investors alike, helping them to make effective decisions about cash flow management and future investments.