How does the Receivables Ratios Calculator work?
Free Receivables Ratios Calculator - Given Net Sales, Beginning Accounts Receivable, and Ending Accounts Receivable, this determines Average Accounts Receivable, Receivables turnover ratio, and Average Collection Period.
This calculator has 3 inputs.
This calculator has 3 inputs.
What 3 formulas are used for the Receivables Ratios Calculator?
Average Receivables = (Beginning Accounts Receivable + Ending Accounts Receivables)/2
Receivables Turnover Ratio = Net Sales/Average Receivables
Average Collection Period = 365/Receivables Turnover Ratio
Receivables Turnover Ratio = Net Sales/Average Receivables
Average Collection Period = 365/Receivables Turnover Ratio
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What 5 concepts are covered in the Receivables Ratios Calculator?
- collection period
- the length of time a business needs to collect its accounts receivables
- ratio
- indicates how many times one number contains another
- receivable
- the money a company's customers owe for goods or services they have received but not yet paid for.
- sale
- the exchange of a commodity or service for money; the action of selling something
- turnover ratio
- an accounting measure used to measure how effective a company is in extending credit as well as collecting debts