Accounts receivable are monies owed to your business for goods or services delivered to a customer, but not yet received. Successful companies collect money that is owed to them in a timely and efficient manner. Having too much money tied up in receivables means you are not getting the cash to pay for the goods or services you have provided. Not extending credit may impact sales. The 'Receivables Turnover Ratio' measures a businesses effectiveness in extending credit and collecting the debt. The higher the ratio, the more efficient the business is in dealing with its receivables. The accounts receivable to sales ratio looks at the amount you have tied up in receivables in comparison to your same period sales. The Average Collection Period shows how long, on average, it takes for you to collect your debts.
Accounts Receivable Analysis
Accounts Receivable Analysis
Receivables Turnover Ratio |
Sales to Accounts Receivable Ratio |
Average Collection Period |
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Ratio Type | Ratio |
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Receivables Turnover Ratio | |
Sales to Accounts Receivables Ratio |
This calculator is intended for informational purposes only and is considered an estimate. The accuracy of this calculator is not guaranteed by General Electric Credit Union (GECU). The calculator and its results do not constitute the advice of, or reflect actual products, services, rates, and/or terms available. Nothing contained in the calculator shall constitute an offer or solicitation of a product or service by GECU. This calculator is not intended to offer any tax, legal, financial, or investment advice. Please consult with qualified advisors to discuss your specific needs.