Receivables Turnover
Definition
A ratio measuring how efficiently a company collects payments from customers on credit sales. A higher ratio means faster collection and better cash management.
Formula / Rules
Net Credit Sales / Average Accounts Receivable
Example
$1,200,000 credit sales and $300,000 average receivables equals 4.0 turnover.
Related Terms
Frequently Asked Question
What is Receivables Turnover?
Receivables Turnover measures how efficiently a company collects on its credit sales. Higher turnover means customers are paying faster, improving cash flow.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.