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Receivables turnover ratio(given average collection period)
Formula
RTR
receivables turnover ratio
ACP
average collection period
Formula description
Receivable Turnover Ratio is one of the accounting activity ratios, a financial ratio. This ratio measures the number of times, on average, receivables are collected during the period. A popular variant of the receivables turnover ratio is to convert it into an Average Collection Period in terms of days. Remember that the Receivable turnover ratio is figured as `turnover times` and the Average collection period is in `days`.