what is accounts receivable turnover rate?
52969
The accounts receivable turnover ratio is an accounting measure used to quantify a company's effectiveness in collecting its receivables or money owed by clients. The ratio shows how well a company uses and manages the credit it extends to customers and how quickly that short-term debt is collected or is paid.
1024660
What Is Accounts Receivable (AR)? Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset.
172651
Accounts receivable—which is the money due to a company for goods or services delivered or used but not yet paid for by customers—are considered current assets as long as they can be expected to be paid within a year.
985891
Accounts receivable is the money owed to that company by entities outside of the company. ... Other receivables can be divided according to whether they are expected to be received within the current accounting period or 12 months (current receivables), or received greater than 12 months (non-current receivables).
29132
Accounts receivable turnover measures how efficiently a company uses its asset. It is an important indicator of a company's financial and operational performance. ... A high accounts receivable turnover indicates an efficient business operation or tight credit policies or a cash basis for the regular operation.
270584
It can be calculated by dividing the average accounts receivable by the credit sales per day. Alternatively, it can be calculated by dividing 365 by the Accounts Receivable Turnover.
1417074
Accounts receivable turnover is the number of times per year that a business collects its average accounts receivable. ... Thus, ABC's accounts receivable turned over 10 times during the past year, which means that the average account receivable was collected in 36.5 days.
824510
What Is Accounts Receivable (AR)? Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. AR is any amount of money owed by customers for purchases made on credit.
1083420
Accounts Receivable Turnover The average collection period is closely related to the accounts turnover ratio. The accounts turnover ratio is calculated by dividing total net sales by the average accounts receivable balance. In the previous example, the accounts receivable turnover is 10 ($100,000 ÷ $10,000).
44953
Interpretation of Accounts Receivable Turnover Ratio A high ratio is desirable, as it indicates that the company's collection of accounts receivable is efficient. A high accounts receivable turnover also indicates that the company enjoys a high-quality customer base that is able to pay their debts quickly.
713684
The accounts receivable turnover is calculated by: Dividing net sales by average accounts receivable.
534005
Accounts receivable days is the number of days that a customer invoice is outstanding before it is collected. ... The calculation indicates that the company requires 60.8 days to collect a typical invoice.
187004
Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset.
53757
Accounts receivable (AR) is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Accounts receivables are listed on the balance sheet as a current asset. AR is any amount of money owed by customers for purchases made on credit. Live. 00:00.
214473
Accounts receivable aging (tabulated via an aged receivables report) is a periodic report that categorizes a company's accounts receivable according to the length of time an invoice has been outstanding. It is used as a gauge to determine the financial health of a company's customers.
1419495
Accounts receivable is the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. Said another way, account receivable are amounts of money owed by customers to another entity for goods or services delivered or used on credit but not yet paid for by clients.
598500
Accounts receivable are typically considered to be liquid assets, as they are expected to be collected within one year. The same can usually be said of inventory on hand that can be reasonably expected to be sold within a year.