Accounts Receivable Turnover | Financial Accounting

Hey everyone! Today, we will be analyzing a crucial metric in accounting known as the Accounts Receivable Turnover ratio.

This ratio measures how often a company collects its average accounts receivable during a period. It gives us insights into the effectiveness of the company’s credit policies and its collection processes. Simply put, it tells us how good the company is at receiving the money it’s owed.

In this video, we will examine the Accounts Receivable Turnover ratio, discuss its components, and work through a detailed example together.

If you found this video and analysis helpful, or if you have more questions about financial ratios, please leave a comment below. Don’t forget to like, share, and subscribe for more accounting videos. Until next time!

Jonathan M. Wild

#accounting #accountingstudent #accountingbasics

[conniewong]

awsome vids! love how enthusiastic the video is

[akbar]

hi sir, your videos are awsome! may i ask you a question please, what if i have an allowance for doubtfull account? is it gonna affect the calculations of average account receivable? thank you very much