Accounts Receivable Turnover Calculator

The Accounts Receivable Turnover measures the number of times Accounts Receivable were collected during the year.

If Accounts Receivable Turnover increases over time:

An increasing Accounts Receivable Turnover usually shows the company is successfully executing its credit policies and more quickly turning its Accounts Receivables into cash.

If Accounts Receivable Turnover decreases over time:

A decreasing Accounts Receivable Turnover usually shows the company is not successfully executing its credit policies and is slower to turn its Accounts Receivables into cash.

If Accounts Receivable Turnover stays the same over time:

An unchanged Accounts Receivable Turnover can show the company may have stagnated in executing its credit policies and is likewise simply maintaining its efficiency in turning its Accounts Receivables into cash.