Receivables Turnover Ratio Defined: Formula, Importance, Examples, Limitations.

What is the Receivables Turnover Ratio? The receivables turnover ratio is a financial metric used to measure a company’s efficiency in collecting its receivables. The ratio is calculated by dividing a company’s sales by its average receivables. Why is the Receivables Turnover Ratio Important? The receivables turnover ratio is important because it is a measure … Read more