Accounts receivable turnover calculator is an important tool used by businesses to measure their financial health. It helps companies understand how quickly they are collecting payments from customers and how effectively their accounts receivable processes are running. The calculation is simple: divide the total amount of sales for a given period of time (usually one year) by the average amount of outstanding accounts receivables for that same period. A high ratio indicates that the business is doing a great job at collecting payments, while a low number shows that improvements can be made. Knowing your Accounts Receivable Turnover Calculator ratio can help you make smarter decisions about managing cash flow and improving customer relations.