How Fast Receivables Turn Over
Compare sales on credit with average money wey customers owe.
Your numbers
Receivables turnover ratio
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
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You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
Use T = S/A and D = d/T. S na net credit sales, A na average receivables, and d na days for the same period. T na receivables turnover and D na collection days.
Compare sales on credit with average money wey customers owe.
Example wey show the calculation
- Net sales on credit
- 600000
- Money wey customers owe on average
- 50000
- Number of days for the period
- 365
- Receivables turnover ratio
- 12 number of times
- Days to collect payment on average
- 30.4166666667 days
Where e fit work and limits
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 28ebe50fcba3 · Example don get check: