MANAGEMENT

Detailed explanation-1: -The accounts receivable turnover ratio measures the number of times a company’s accounts receivable balance is collected in a given period.

Detailed explanation-2: -It measures how efficiently and quickly a company converts its account receivables into cash within a given accounting period. Accounts Receivable (AR) Turnover Ratio Formula & Calculation: The AR Turnover Ratio is calculated by dividing net sales by average account receivables.

Detailed explanation-3: -Money owed to a business is sometimes referred to as “accounts receivable.” A company’s inventory-receivables turnover ratio is a measure of how quickly it receives money that it is owed, most often in the form of credit payments.

Detailed explanation-4: -The inventory turnover ratio is a measure of how many times your average inventory is “turned” or sold in a certain period of time. Put simply, the inventory turnover ratio indicates how many times you have managed to sell your entire stock in a year.

Detailed explanation-5: -Accounts receivable turnover, or A/R turnover, is calculated by dividing a firm’s sales by its accounts receivable. It is a measure of how efficiently a company is able to collect on the credit it extends to customers.