Receivables Turnover
Free Receivables Turnover calculator with clear step-by-step results.
About Receivables Turnover
Receivables turnover shows how many times receivables are collected in a year.
Formula
Formula
Receivables turnover = credit sales ÷ average receivables
Worked example
With the default values below, Receivables Turnover returns Receivables Turnover of 5.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Annual credit salesminimum 0 $
- 300,000 $
- Average receivablesminimum 0 $
- 60,000 $
Results
- Receivables Turnover
- 5.00
- Days Sales Outstanding
- 73.0
- Collections Per Year
- 5.00
Step by step
- 1Values used
- 2Formula
- 3Receivables Turnover= 5.00
- 4Days Sales Outstanding= 73.0
- 5Collections Per Year= 5.00
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Receivables turnover shows how many times receivables are collected in a year.
Why does this matter?
Higher turnover means faster collection and healthier cash flow.