# Accounts Receivable Turnover

 Net Credit Sales: Average Accounts Receivable:

Output: `Press calculate`

Formula:`ART = Net Credit Sales / Average Accounts Receivable`

## Introduction to Accounts Receivable Turnover Calculator

The Accounts Receivable Turnover (ART) ratio measures how often a company collects its average accounts receivable and is an indicator of the efficiency with which a company manages and collects the credit it extends to customers. The formula for ART is ART = net credit sales divided by average accounts receivable. This measurement is typically made on an annual basis.

## Parameter usage:

• `netCreditSales` = The total amount of sales made on credit over a given period, usually one year.
• `averageAccountsReceivable` = The average amount of money owed by customers from credit sales, calculated by taking the sum of starting and ending accounts receivable over a period of time and dividing by two.

## Example valid values:

• `netCreditSales`= 15000
• `averageAccountsReceivable`= 3000

## Output:

• `turnover` = The number of times that the accounts receivable is