oboloo

oboloo Glossary

Accounts Receivable Turnover Ratio Formula

oboloo Glossary

Accounts Receivable Turnover Ratio Formula

The Accounts Receivable Turnover Ratio Formula is a crucial metric used to measure how efficiently a business collects its outstanding debts. It measures the number of times a company’s accounts receivables are collected and replaced in a given year—which gives you an indication of how well the company is managing its customer credit policies. To calculate this ratio, divide the total amount of accounts receivable into the total net sales for the same period. This will provide you with an accurate measurement of your company’s Accounts Receivable Turnover. Knowing your Accounts Receivable Turnover can help you keep better track of your customer payments, which in turn can help you make better informed financial decisions.

Want to find out more about procurement?

Access more blogs, articles and FAQ's relating to procurement

Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

Oboloo transparent

The smarter way to have full visibility & control of your suppliers

Contact

Feel free to contact us here. Our support team will get back to you as soon as possible

© 2024 oboloo Limited. All rights reserved. Republication or redistribution of oboloo content, including by framing or similar means, is prohibited without the prior written consent of oboloo Limited. oboloo, Be Supplier Smart and the oboloo logo are registered trademarks of oboloo Limited and its affiliated companies. Trademark numbers: UK00003466421 & UK00003575938 Company Number 12420854. ICO Reference Number: ZA764971