Accounts receivable turnover rate:

Standard value of accounts receivable turnover set by enterprises: 3. Social average is 7.8, excellent value is 24.3, and good value is 15.2. The average construction industry is 4.2, real estate industry is 3.8, wholesale and retail industry is 8.9, and accommodation and catering industry is 8.3. The turnover rate of accounts receivable refers to the average number of times accounts receivable are converted into cash within a certain period (usually one year).

Calculation formula of accounts receivable turnover rate:

Accounts receivable turnover rate = net income from credit sales/average balance of accounts receivable = (net income from sales in current period-cash sales income in current period)/(opening balance of accounts receivable+closing balance of accounts receivable) /2 Accounts receivable turnover rate = net income from sales in current period/(opening balance of accounts receivable+closing balance of accounts receivable) /2.

The influence of accounts receivable turnover rate on the company;

Generally speaking, the higher the turnover rate of accounts receivable, the better, indicating that the company has a fast repayment speed, a short average repayment period, less bad debt losses, fast asset flow and strong solvency. Accordingly, the shorter the average collection period, the better. If the number of days that the company actually collects the accounts exceeds the number of days of accounts receivable stipulated by the company, it means that the debtor has been in arrears for a long time, and the credit reliability is low, which increases the risk of bad debt losses.

At the same time, it also shows that the company's poor collection of accounts has caused bad debts or even bad debts, which has caused the current assets to not flow, which is very unfavorable to the normal production and operation of the company.

But on the other hand, the high turnover times of accounts receivable and the short average payment cycle indicate that the enterprise pursues a tight credit policy and the payment terms are too harsh, which will limit the expansion of enterprise sales, especially when the cost of this restriction (opportunity income) is greater than the cost of credit sales, which will affect the profitability of the enterprise.