Receivables Turnover
How many times a year a company collects its average accounts receivable — the inverse view of DSO.
What it is
Receivables turnover counts how many times in a period a company collects its average outstanding customer balances. It is revenue divided by average accounts receivable. A higher number means the company collects its credit sales more often and more quickly.
Why it matters
Efficient collection frees up cash and lowers the risk of bad debts, while a declining ratio can flag weaker customers or looser credit terms. It is the same information as days sales outstanding expressed as a frequency rather than a number of days. Used together, the two give a full picture of collection efficiency.
How it's calculated
Divide total credit revenue by average accounts receivable; days sales outstanding then equals 365 divided by the turnover figure.
How Quintarthai uses it
Revenue and accounts receivable for this ratio are on the Financials tab of a company deep-analysis page, alongside the related collection metrics.