Accounts Receivable Turnover is used to quantify a firm’s effectiveness in collecting its receivables or credit sales. It represents the ratio of credit sales to the average balance in accounts receivable.
Some other related topics you might be interested to explore are Number of Days of Receivables, Operating Cycle, and Net Operating Cycle.
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Accounts Receivable Turnover is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.
