Series 79: Receivables Turnover Ratio

Taken from our FINRA Investment Banking Exam

Definition of the term Receivables Turnover Ratio...

a measure of how promptly a company collects receivables during a given accounting period, such as a fiscal year. It is the period’s net revenues (or net credit sales, if the company shows this on its income statement) over the average dollar value of the company’s accounts receivable for the period. Compare to days sales outstanding (DSO).

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Solomon Exam Prep Study Materials for the Series 79
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