Accounts Receivable Turnover Ratio? (1 Viewer)

[Jexi]

Guys, if you mathematically work it out:

eg. ac/receivable = $60

sales = $350

Formula one: AccR/(Sales/365)

This would equal to: 60/(350/365) = 62.57

Formula two: 365 / (sales/ AccR)

This would equal to: 365 / (350/60) = 62.57

Therefore the two formulas are the same really

 

[Smartieco]

Accounts recievable turnover ratio = sales revenue / Acoounts recievable

and average collection period = 365days/ recievables turnover ratio