2. Accounts receivable is another important item besides inventory in current assets of enterprises. The turnover rate of accounts receivable is the ratio of net income from credit sales to the average balance of accounts receivable in a certain period. It is an index to measure the turnover speed and management efficiency of enterprise accounts receivable.
3. The company's accounts receivable occupy an important position in current assets. If the company's accounts receivable can be recovered in time, the efficiency of the company's capital use can be greatly improved. Accounts receivable turnover rate is the ratio reflecting the company's accounts receivable turnover rate. It shows the average number of times a company's accounts receivable are converted into cash in a certain period of time. The turnover rate of accounts receivable expressed in time is the average recovery period, which is also called the average recovery period of accounts receivable or the average cash recovery period. It represents a company's right to obtain accounts receivable and the time it takes to recover the money and turn it into cash.
1. When investing in listed companies, it is indispensable to analyze listing announcements, financial statements and other related contents, so relevant financial analysis indicators must be understood, such as what the accounts receivable turnover formula is, and the methods and skills for calculating the accounts receivable turnover formula. Below, let's analyze the calculation method and basic concepts. First of all, we need to understand the basic concept of accounts receivable turnover rate, which refers to the average number of times accounts receivable are converted into cash in a certain period, which can also be called collection rate, and is used to measure the liquidity of accounts receivable of enterprises;
2. Simply put, the ratio of net credit sales to the average balance of accounts receivable in a certain period is generally one year; Secondly, the accounts receivable turnover rate formula is divided into theoretical formula and application formula, so its calculation method is also different.
(1) theoretical formula
Accounts receivable turnover rate = net income from credit sales/average balance of accounts receivable * 100%=2 (net income from sales in the current period-cash sales income in the current period)/(opening balance of accounts receivable+closing balance of accounts receivable) *100%; Among them, the average collection period =360/ accounts receivable turnover rate;
(2) Use the formula accounts receivable turnover rate =2 current net sales revenue/(accounts receivable opening balance+accounts receivable closing balance); The average collection period =360/ accounts receivable turnover rate;
3. From the analysis of the basic formula, we can see that the difference between them lies in whether the sales income includes cash sales income, but in general, the higher the turnover rate of accounts receivable, the better, which means that the accounts can be recovered quickly and the account age is relatively short; Strong liquidity and short-term solvency; Can reduce the loss of bad debts; Therefore, when studying and analyzing the turnover rate of accounts receivable, investors should combine it with the operation mode of enterprises, which is also convenient for investors to analyze the financial statements and other related contents of listed companies.