Receivables turnover ratio with turnover times
Formula
RTR
receivables turnover ratio
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`.