- Receivables turnover ratio
**Receivable Turnover Ratio**is one of theaccounting liquidity ratios, afinancial ratio . This ratio measures the number of times, on average, receivables (e.g.Accounts Receivable ) are collected during the period. A popular variant of the receivables turnover ratio is to convert it into an**Average Collection Period**in terms of days. Remember that the Receivable turnover ratio is figured as "turnover times" and the Average collection period is in "days".**ources***

**Receivables Turnover Ratio**= Net credit sales/ Average net receivables [*Weygandt, J. J., Kieso, D. E., & Kell, W. G. (1996). "Accounting Principles" (4th ed.). New York, Chichester, Brisbane, Toronto, Singapore: John Wiley & Sons, Inc. p. 800.*]

***Average Collection Period**= 365 / Receivables Turnover Ratio [*Weygandt, J. J., Kieso, D. E., & Kell, W. G. (1996). "Accounting Principles" (4th ed.). New York, Chichester, Brisbane, Toronto, Singapore: John Wiley & Sons, Inc. p. 801.*]**References**

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