Account Receivable Turnover

  

No relationship to an apple turnover. You have a sales figure...say it's $100 million. You have money owed to you from sales you've made, cleverly called "Accounts Receivable." So the question...and you have to ask yourself, "Do I feel lucky, punk?"...is "How many times does the accounts receivable number divide into the sales figure?" That's the AR Turnover number. That's it.

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