Along with other standard financial statement analytic tools, the accounts receivable turnover ratio is a useful benchmark for a small business to track regularly. The ratio tells a story about ...

The accounts receivable ratio is one of the financial performance indicators that businesses monitor. It is useful for companies that sell goods and services on credit. Accounting theory considers ...

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 ...

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 ...

The receivables turnover ratio measures how many times a company successfully collects its average accounts receivable balance over a certain period (usually a year). This ratio helps companies ...

Accounts receivable refer to money customers owe businesses ... AR can be tracked by several financial metrics. The AR turnover ratio measures how many times a company has collected its AR balance ...

$30,000 in accounts receivable and $80,000 in current liabilities. Its acid-test ratio would be: 50,000 + 20,000 + 30,000 / 80,000 = 1.25 A ratio above 1.0 indicates that liquid assets exceed ...

They may consider several turnover ratios, including accounts receivable, inventory and total assets. Potential investors and lenders may consider these ratios when determining risk. Turnover can ...