Forderungsumschlag (EN)

Definition

The accounts receivable turnover is a key metric for measuring the efficiency of accounts receivable management and indicates how often the average receivables are turned over within a year. This metric is an indicator of the speed at which a company can collect its receivables. A higher accounts receivable turnover indicates better liquidity and more efficient credit practices.

Calculation

flowchart LR   A[Sales] --> B[/Accounts Receivable Turnover/]   C[Average Receivables] --> B 

In Context

• Typically used together with other liquidity metrics such as the cash-to-cash cycle
• Related to: Accounts receivable management, Receivables aging, Liquidity
• Example usage: A company with €10 million in sales and average receivables of €2 million has an accounts receivable turnover of 5