{
  "id": "accounts-receivable-turnover",
  "version": "cae8eb1d4a0c",
  "status": "published",
  "name": "Accounts Receivable Turnover Calculator",
  "question": "Accounts receivable turnover",
  "summary": "Computes the accounts receivable turnover ratio, net credit sales ÷ average accounts receivable, and the days’ sales in receivables.",
  "category": "finance",
  "subcategory": "business",
  "url": "https://www.acalculator.org/finance/accounts-receivable-turnover-calculator",
  "markdown": "https://www.acalculator.org/finance/accounts-receivable-turnover-calculator.md",
  "kind": "function",
  "method": "Average accounts receivable = (beginning + ending) ÷ 2 (ending alone when no beginning is given). Turnover = net credit sales ÷ average accounts receivable. Days’ sales in receivables = 365 ÷ turnover = average accounts receivable ÷ net credit sales × 365.",
  "assumptions": [
    "Net credit sales cover one year, the year the two balances start and end; the year has 365 days.",
    "Arithmetic is exact on the typed decimals; both results show to 2 decimals, halves up."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "sales": {
        "title": "Net credit sales",
        "description": "Sales on credit for the year, after returns and allowances. Use net sales if credit sales are not shown.",
        "type": "number",
        "x-unit": "USD",
        "exclusiveMinimum": 0,
        "maximum": 1000000000000000
      },
      "bar": {
        "title": "Accounts receivable at the start",
        "description": "Accounts receivable at the start of the year. Leave empty to use the ending balance alone.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      },
      "ear": {
        "title": "Accounts receivable at the end",
        "description": "Accounts receivable at the end of the year.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000000000
      }
    }
  },
  "outputs": {
    "turnover": {
      "label": "Accounts receivable turnover",
      "description": "Net credit sales ÷ average accounts receivable: how many times a year receivables are collected.",
      "format": "number"
    },
    "days": {
      "label": "Days’ sales in receivables",
      "description": "365 ÷ accounts receivable turnover: the average days to collect a credit sale.",
      "format": "number"
    },
    "average": {
      "label": "Average accounts receivable",
      "description": "(Beginning + ending accounts receivable) ÷ 2, or the ending balance when no beginning is given.",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "sales": 400000,
      "bar": 70000,
      "ear": 90000
    },
    "outputs": {
      "turnover": 5,
      "days": 73,
      "average": 80000
    },
    "text": "On net credit sales of $400,000.00, receivables turned over 5 times, so a credit sale took 73 days to collect on average."
  },
  "examples": [
    {
      "given": {
        "sales": 400000,
        "bar": 70000,
        "ear": 90000
      },
      "expect": {
        "turnover": 5,
        "days": 73,
        "average": 80000
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 9.3 Determine the Efficiency of Receivables Management Using Financial Ratios (turnover = net credit sales ÷ average accounts receivable; days’ sales in receivables = 365 ÷ turnover). https://openstax.org/books/principles-financial-accounting/pages/9-3-determine-the-efficiency-of-receivables-management-using-financial-ratios: 400,000 ÷ ((70,000 + 90,000) ÷ 2) = 5 times; 365 ÷ 5 = 73 days"
    },
    {
      "given": {
        "sales": 550000,
        "bar": 50000,
        "ear": 80000
      },
      "expect": {
        "turnover": 8.461538461538462,
        "days": 43.13636363636363
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 9.3 Determine the Efficiency of Receivables Management Using Financial Ratios (turnover = net credit sales ÷ average accounts receivable; days’ sales in receivables = 365 ÷ turnover). https://openstax.org/books/principles-financial-accounting/pages/9-3-determine-the-efficiency-of-receivables-management-using-financial-ratios: 550,000 ÷ 65,000 = 8.46 times; 43.14 days (both rounded); exact 110/13 and 949/22 (Python Fraction)"
    },
    {
      "given": {
        "sales": 450000,
        "bar": 90000,
        "ear": 85000
      },
      "expect": {
        "turnover": 5.142857142857143,
        "days": 70.97222222222223
      },
      "source": "OpenStax, Principles of Accounting, Volume 1, 9.3 Determine the Efficiency of Receivables Management Using Financial Ratios (turnover = net credit sales ÷ average accounts receivable; days’ sales in receivables = 365 ÷ turnover). https://openstax.org/books/principles-financial-accounting/pages/9-3-determine-the-efficiency-of-receivables-management-using-financial-ratios: 450,000 ÷ 87,500 = 5.14 times; exact 36/7 and 2555/36 days (Python Fraction). OpenStax prints 71.01 days because it divides 365 by the rounded 5.14"
    },
    {
      "given": {
        "sales": 400000,
        "ear": 80000
      },
      "expect": {
        "turnover": 5,
        "days": 73
      },
      "source": "hand calculation in content.mdx: 400,000 ÷ 80,000 = 5; 80,000 ÷ 400,000 × 365 = 73 days"
    }
  ],
  "sources": [
    "OpenStax, Principles of Accounting, Volume 1, 9.3 Determine the Efficiency of Receivables Management Using Financial Ratios: accounts receivable turnover = net credit sales ÷ average accounts receivable, average = (beginning + ending) ÷ 2, number of days' sales in receivables = 365 ÷ turnover, and the Billie's Watercraft Warehouse and Company A and B examples. https://openstax.org/books/principles-financial-accounting/pages/9-3-determine-the-efficiency-of-receivables-management-using-financial-ratios (retrieved 2026-10-18)",
    "OpenStax, Principles of Finance, 6.2 Operating Efficiency Ratios: the same turnover formula, with net sales in place of credit sales when credit sales are not reported. https://openstax.org/books/principles-finance/pages/6-2-operating-efficiency-ratios (retrieved 2026-10-18)"
  ],
  "related": [
    "dso",
    "inventory-turnover",
    "asset-turnover",
    "working-capital"
  ],
  "changelog": []
}