receivables turnover

Definition

The average duration of an account receivable, equal to total credit sales divided by accounts receivable. also called accounts receivable turnover.

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The receivables turnover was important to us because it was the duration of an account receivable and we needed it.

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It is in a businesses' best interest to have their receivables turnover be as low as possible as this keeps cash flow high.

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We checked the numbers on the receivables turnover and came away more confident than ever that we would be on good financial footing this quarter.

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receivables financing receive against payment