Receivables Turnover Ratio

Measure how many times per year a company collects its average accounts receivable balance, reflecting billing and collection efficiency.

Receivables Details

Results

Receivables Turnover Ratio

Days Sales Outstanding

Interpretation

Formula

RTR = Net Credit Sales / Average Accounts Receivable
DSO = 365 / Receivables Turnover Ratio
A higher ratio means faster collection of receivables.

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