AR Turnover Ratio Calculator
This calculator requires the use of Javascript enabled and capable browsers. This script is one of several termed as operational ratios. This measures the effectiveness to turn the credit sales inventory annually. Enter the annual average of the inventory value. Enter the annual sales value, excluding labor or non-inventory sales. Finally click on Calculate to see the turnover ratio. Though not true for all businesses, the inventory sold on open account should turn at least 10 times annually; that is a ratio of 10. Be aware that this is NOT the same as inventory rollover or turnover.
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