Receivables Turnover

Receivables Turnover (RT) The Receivables Turnover measure assesses the level of cash sales relative to credit. For instance, if total sales are $100 and a company has $50 in accounts receivables, the measure would be 2 – or cash sales are twice as common as credit sales. A low figure may indicate that underlying cashflow issues may surface from time to time. Please note that it is not possible for Jazoodle to identify how many sales are created by offering credit to a company’s customers. However, this can be estimated by relating the total revenue to the number of debtors that a business currently has in place. Therefore, the Receivables Turnover is based upon this assumption.