Receivables turnover ratio
EFFECTIVENESS OF A BUSINESS IN COLLECTING ITS CREDIT SALES FROM CUSTOMERS
Receivables Turnover Ratio; Average collection period
Receivable Turnover Ratio or Debtor's Turnover Ratio is an accounting measure used to measure how effective a company is in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.