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

##### 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.

### 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

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