Accounts Receivable Turnover
The accounts receivable turnover is a financial metric used to measure how efficiently a company is collecting the money owed by its customers. It is calculated by dividing the net credit sales by the average accounts receivable during a given period. The ratio indicates the number of times a company can collect its average accounts receivable balance during a given period. A higher ratio is favorable as it indicates that the company is collecting its receivables quickly, which means that it has cash available to support its operations and growth initiatives. Conversely, a lower ratio can indicate that the company is struggling to collect its receivables, which can affect its liquidity and profitability.
Additional Details
| Metric Name |
Type |
Default Period Type |
| ar_turnover |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
float |