Accounts Receivable Turnover
Measures the rate at which you collect on outstanding accounts.
The Accounts Receivable Turnover KPI measures the rate at which you collect on outstanding accounts. The problem in maintaining a large bill for a customer is that you are essentially offering them an interest-free loan. Monitoring this metric is essential to ensure that accounts receivable is collecting on bills in a timely manner. This KPI is an essential piece of understanding your organization's cash flow process.
Formula
Net Credit Sales / Average Account Receivable
Services
Role
C-Level,
VP / Director
