Receivables Turnover Calculator
The accounts receivables turnover ratio measures the number of times a company collects its average accounts receivable balance. It is a quantification of a company’s effectiveness in collecting outstanding balances from clients and managing its line of credit process. Your accounts receivable turnover ratio measures your company’s ability to issue credit to customers and collect funds on time. Tracking this ratio can help you determine if you need to improve your credit policies or collection procedures. Additionally, when you know how quickly, on average, customers pay their debts, you can more accurately predict cash flow trends. Cleaning companies, on the […]