Optimize Cash Flow: Accounts Receivable Turnover Calculator
Accounts Receivable Turnover Calculator
Measure how efficiently your company collects its credit sales by calculating the Accounts Receivable Turnover ratio.
Input Your Data
Total credit sales during a period, less any returns or allowances.
Accounts receivable balance at the start of the period.
Accounts receivable balance at the end of the period.
Your Results
Average Accounts Receivable:
$0.00
The average balance of accounts receivable over the period.
Accounts Receivable Turnover:
0.00 times
Indicates how many times a company collects its average accounts receivable during a period.
How It Works
- Enter your total net credit sales for the period.
- Input the accounts receivable balance at the beginning of the period.
- Provide the accounts receivable balance at the end of the period.
- Click "Calculate" to see your average accounts receivable and the turnover ratio.
- The "Clear" button will reset all fields.
Formula for Average Accounts Receivable: (Beginning Accounts Receivable + Ending Accounts Receivable) / 2
Formula for Accounts Receivable Turnover: Net Credit Sales / Average Accounts Receivable
Interpretation: A higher turnover ratio generally indicates efficient collection of credit sales.
