oboloo Glossary

A/R Turnover Ratio Calculator

oboloo Glossary

A/R Turnover Ratio Calculator

A/R turnover ratio calculator is a standard ratio used to show the efficiency of a business. Definition: A/R turnover ratio is the ratio of revenue collected from credit sales to accounts receivables balance.

A/R Turnover Ratio = Accounts Receivables Balance / Revenue Collected from Credit Sales

In other words, it’s the percentage of sales that were paid for using credit. How to Calculate A/R Turnover Ratio: