Calculating an accounts receivable turnover ratio offers insight into how well a business handles the collection of its receivables. By using an AR turnover formula, businesses can determine the ...

Accounts receivable turnover and inventory turnover are two important ratios used by analysts to measure how efficiently a firm is paying its bills, collecting cash from customers, and turning ...

An asset utilization ratio that is used to determine how well a company collects receivables and short term IOU’s from customers. The accounts receivable turnover ratio is calculated by dividing a ...

Amy is an ACA and the CEO and founder of OnPoint Learning, a financial training company delivering training to financial professionals. She has nearly two decades of experience in the financial ...

Accounts receivable represents money owed to a business in return for goods already delivered or services already rendered. As an integral element of a company's cash flow, accounts receivable can ...

Aging your accounts receivable means measuring the amount of time between when unpaid invoices were issued and the current date. This information is summarized on the accounts receivable aging report, ...

Most businesses offer their customers the option to pay on credit — often called “trade credit” — to provide added flexibility and convenience. When a customer purchases a product or service on credit ...