How to Calculate Accounts Receivable Turnover
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Accounts receivable are monies owed to your business for goods or services delivered to a customer but not yet paid for. Successful businesses collect money that is owed to them in a timely and efficient manner. Having too much money tied up in receivables means you're not collecting the cash to pay for the goods or services you've provided. Not extending credit may impact sales. The Receivables Turnover Ratio measures business’ effectiveness in extending credit and collecting debt. The higher the ratio, the more effective the business is in dealing with its receivables. The accounts receivable to sales ratio looks at the amount you have tied up in receivables in comparison to your same period sales. The Average Collection Period shows how long, on average, it takes for you to collect your debts.

Use this calculator to review your accounts receivable turnover.

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The calculations provided by this calculator are for educational purposes only and based entirely on the information you enter, including any savings rate or expected rate of return. Regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. Information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. These calculations do not reflect the terms available for any Regions savings or other deposit accounts. Find out more about the Regions Small Business CashCOR process.