## Receivables Turnover Ratio

Receivable Turnover Ratio is one of the accounting activity ratios, a financial ratio. This ratio measures the sources. Accounts receivable turnover ratio simply measures how many times the receivables are collected during a particular period.

It is a helpful tool to evaluate the liquidity of receivables.Receivables turnover ratio is computed by dividing the net credit sales during a period by average receivables.

## $$\frac{N}{A}$$

HERE N=Net Credit Sales and A=Average Net Receivables

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