??? Receivable Turnover Ratio ??? (1 Viewer)

[xbrlchina]

But mang book writed:


Net annual sales????


Which one is correct?Thanks!

 

[nicole1]

the accounts receivable turnove ratio is :

accounts receivable
(over) average sales per day

to get avg sales per day devide sales by 365

 

[turtleface]

"Net Credit Sales/Avg Accounts Receivable" gives Debtors Turnover in terms of number of times the receivables balance is sold per year

"Net Sales/Avg Accounts Receivable" gives Average collection period, which is often used to APPROXIMATE Debtor's turnover

365 X 1/(Net Credit Sales/Avg Accounts Receivable) gives Debtors Turnover in terms of average number of days

 

[Conspirocy]

"Net Credit Sales/Avg Accounts Receivable" gives Debtors Turnover in terms of number of times the receivables balance is sold per year

"Net Sales/Avg Accounts Receivable" gives Average collection period, which is often used to APPROXIMATE Debtor's turnover

365 X 1/(Net Credit Sales/Avg Accounts Receivable) gives Debtors Turnover in terms of average number of days

i have nothing to add so i'll give it a tick

 

[xbrlchina]

Thank you!