Accounts Receivable Turnover

Measures the rate at which you collect on outstanding accounts.

Financial KPI Examples | Accounts Receivable Turnover

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

QuickBooks Dashboard | Quickbooks logo Xero Dashboard | Xero Logo

Role

C-Level, VP / Director

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