The accounts receivable turnover ratio or (ARTR) is one of the efficiency ratios investors use to determine how efficient a company is at collecting its money from its customers, or simply put, how long does the company get the money after it has made a sale. As a rule of thumb, the quicker the company can get paid the better.
The formula for determining the Accounts Receivable Turnover Ratio is defined as:
\(ARTR\): Account receivable turnover ratio
\(Turnover\): The total amount of sales of products/services.
\(Accounts\text{ }Receivable\): the amount of money the customers own a company for products or services
Find Accounts Receivable Turnover Ratio
Use this calculator to find out how efficient a company is at collecting its money from sales made.
The total amount of sales of products/services.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
the amount of money the customers own a company for products or services
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
