The accounts receivables turnover ratio measures how efficiently a company collects payment from its customers. The receivables turnover ratio measures how many times a company successfully ...

Accounts receivable turnover, or A/R turnover, is calculated by dividing a firm's sales by its accounts receivable. It is a measure of how efficiently a company can collect on the credit it ...

Assuming that credit sales are sales not immediately paid in cash, the accounts receivable turnover formula is credit sales divided by average accounts receivable. The average accounts receivable ...

Also assume that cost of sales is £2000. Inventory turnover formula: \(\frac {\text{Cost of sales}} {\text{Average stock}} = \frac {£2000} {£2250} = 0.9~ \text{times per year}\) This is a low ...