To calculate the accounts receivable turnover ratio, divide net credit sales by the average accounts receivable balance. Net credit sales represent total credit sales minus returns and allowances. The average accounts receivable balance is calculated by adding the beginning and ending accounts receivable balances for a specific period and dividing by two.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
