Receivables Ratios Calculator

<-- Net Sales
<-- Beginning Accounts Receivable
<-- Ending Accounts Receivable
  

How does the Receivables Ratios Calculator work?

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.

What 3 formulas are used for the Receivables Ratios Calculator?

  1. Average Receivables = (Beginning Accounts Receivable + Ending Accounts Receivables)/2
  2. Receivables Turnover Ratio = Net Sales/Average Receivables
  3. Average Collection Period = 365/Receivables Turnover Ratio

For more math formulas, check out our Formula Dossier

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