Small business owners often extend credit to customers by allowing them to delay payment for services or products. Money owed by customers for goods or services already provided is called accounts ...

A high accounts receivable turnover ratio means that you have a strong credit collection policy and do well collecting cash quickly from accounts. High accounts turnover is important for companies in ...

This simple calculation indicates how efficiently an organization collects money owed by its customers during each accounting period (typically one year). The ratio shows how many times a year ...

An asset utilization ratio that is used to determine how well a company collects receivables and short term IOU’s from customers. The accounts receivable turnover ratio is calculated by dividing a ...

Greg DePersio has 13+ years of professional experience in sales and SEO and 3+ years as a writer and editor. Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, ...

As you sift through the financials of investment prospects, keep an eye on accounts receivable. This item, found just below "cash and equivalents" on the balance sheet, indicates the money owed a ...