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Receivables Turnover Ratio Calculator


FAQ

What is the formula for the receivables turnover ratio?

The formula for the receivables turnover ratio is:

Receivables Turnover Ratio = Net Credit Sales / Average Accounts Receivable

 

Where:

  • Net Credit Sales = Total Sales - Cash Sales - Sales Returns
  • Average Accounts Receivable = (Beginning Accounts Receivable + Ending Accounts Receivable) / 2

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