What Is Debtors Turnover Ratio: A Service Business Guide
The debtors turnover ratio measures how many times your business collects its average receivables during a period, using Net Credit Sales / Average Accounts Receivable. If your ratio is 8, that means you collect your average receivables about eight times per year, or roughly every 45 days. If you run a service business, you've probably felt the disconnect. Revenue looks solid
