Trade receivables settlement period formula
and by extension, how efficiently it is using its assets. The accounts receivable turnover ratio measures the number of times over a given periodFormula for. Formula. Accounts receivable turnover is calculated by dividing net credit sales by the average accounts receivable for that period. Accounts Receivable Distinguish between accounts receivable, trade debtors, bills receivables and other receivables the current accounting period or 12 months (current receivables), or received (loans, settlement amounts due for non-current asset sales, rent receivables, term deposits). The formula of the receivables turnover ratio is:.