Normal range of accounts receivable turnover rate

The standard value set by enterprises of accounts receivable turnover rate: 3. Accounts receivable turnover rate = net income from main business/average balance of accounts receivable.

The average social value is 7.8, the excellent value is 24.3, and the good value is 15.2. The average construction industry is 4.2, the real estate industry is 3.8, the wholesale and retail industry is 8.9, and the accommodation and catering industry is 8.3.

There are some factors that will affect the accuracy of accounts receivable turnover rate and the calculation of turnover days. First, due to the seasonal reasons of the company's production and operation, the accounts receivable turnover rate can not correctly reflect the actual situation of the company's sales. Second, some listed companies use installment payment in the process of product sales. Third, some companies take a large amount of cash to sell. Finally, In some companies, the year-end sales volume has greatly increased or decreased. These factors will have a great impact on the turnover rate or turnover days of accounts receivable. When analyzing these two indicators, investors should compare the company's current indicators with the company's previous indicators, the industry average level or other similar companies, and judge the level of this indicator. "

What are the specific report items of" accounts receivable "in the calculation formula of accounts receivable turnover index?

The turnover rate of accounts receivable is the number of times accounts receivable are collected in a certain accounting period. It is not good if the index is too high or too low, and a suitable range should be specified according to the industry of the enterprise. Too high indicates that there are many accounts receivable and high risks, which may lead to bad debts, and the funds are used by others for free, with low efficiency in fund use and poor management level. If it is too low, it indicates that the enterprise implements a rather harsh letter of credit policy, which will lead to the loss of a considerable number of customers. It will affect the expansion of the sales scale of the enterprise, and the profit will be greatly reduced.

Accounts receivable turnover rate = merchandise credit sales income (which is directly regarded as the main business income in reality)/average balance of accounts receivable

Average balance of accounts receivable = (opening balance of accounts receivable+closing balance of accounts receivable) /2

The contents of the normal range of accounts receivable turnover rate are mentioned above, and it depends on what industry. Generally, the turnover rate requirements of different industries are different, which many enterprises will be misled. Accounting friends must keep in mind that if you encounter other accounting problems in actual operation, please consult the online Q&A teacher!