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Accounts Receivable Turnover (Days) (Average Collection Period) â an activity ratio measuring how many days per year averagely needed by a company to collect its receivables.
To provide an example of how to calculate the receivables turnover ratio, suppose that during 2014 Company A had $800,000 in net credit sales. Also suppose that on the first of January it had $64,000 accounts receivable and that on December 31 it had $72,000 accounts receivable.nvestopedia explains: The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or revenue, and is a calculation of the amount of sales or revenue generated ...