The reasonable range of accounts receivable turnover rate is as follows:

Generally, the accounts receivable turnover rate is more than 7.8, which is the average value of various industries in society, while the value above 15.2 is good performance, and above 24.3 is excellent performance.

It should be noted that the turnover rate of accounts receivable varies greatly in different industries: for example, the average value of construction industry is 4.2, the average value of real estate industry is 3.8, the average value of wholesale and retail industry is 8.9, the average value of accommodation and catering industry is 8.3, and the average value of light industry is 6.1.

expanding knowledge:

1. Brief introduction of accounts receivable turnover rate:

Accounts receivable is another important item of current assets of enterprises besides inventory. The turnover rate of accounts receivable is the ratio of the net income of 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.

The company's accounts receivable play an important role 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. The turnover rate of accounts receivable is the ratio reflecting the turnover rate of accounts receivable of the company. It shows the average number of times a company's accounts receivable are converted into cash in a certain period.

The turnover rate of accounts receivable expressed in time is average collection period, also known as the average payback period or average cash collection period of accounts receivable. It represents the time it takes for a company to get the right of accounts receivable to recover the money and turn it into cash.

II. Accounts receivable turnover formula

1. Theoretical formula

Accounts receivable turnover ratio = net income from credit sales/average balance of accounts receivable *111% = 2 (net income from current sales-current cash sales income)/(balance of accounts receivable at the beginning+balance of accounts receivable at the end) * 111%, where average collection period = 361/turnover ratio of accounts receivable.

2. Use the formula

Accounts receivable turnover rate = 2 current net sales income/(balance of accounts receivable at the beginning+balance of accounts receivable at the end), where average collection period = 361/accounts receivable turnover rate.

III. Precautions

The turnover rate of accounts receivable should be considered in combination with the operation mode of the enterprise. The use of this indicator can not reflect the actual situation in the following situations: first, enterprises that operate seasonally; Second, the installment payment settlement method is widely used; Third, a large number of cash-settled sales are used; Fourth, a large number of sales at the end of the year or a sharp decline in sales at the end of the year.