accounts receivable turnover

accounts receivable turnover definition - finance
Net sales divided by average net accounts receivable. This financial measure shows the relative size of a companyÂ’s accounts receivables and how well the company is doing at collecting the money it is owed. In order to be relevant, a companyÂ’s turnover must be compared with others in the industry.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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