The Credit Turnover Formula is an important tool for businesses to measure their financial performance. It is a calculation that measures the amount of credit extended to customers over a given period of time. This formula is a useful tool for businesses to understand how efficiently they are using their credit resources. The formula is calculated by dividing the total amount of credit extended by the average amount of credit outstanding during the period. This calculation gives businesses an idea of how quickly they are able to collect payments from their customers. The Credit Turnover Formula is an important metric for businesses to measure their financial performance and to ensure that they are using their credit resources efficiently. By understanding their credit turnover rate, businesses can make better decisions about how to manage their credit resources and ensure that they are getting the most out of their credit resources.