A profitable accounts receivable turnover ratio formula creates both survival and success in business. Phrased simply, an accounts receivable turnover increase means a company is more effectively processing credit. In comparison, an accounts receivable turnover decrease means a company is seeing more delinquent clients. It is quantified by the As a result, the accounts receivable turnover ratio is: credit sales of $6,000,000 divided by the average amount of accounts receivable of $600,000 = 10 times a year. This indicates that on average the company’s accounts receivables turned over 10 times during the year, or approximately every 36 days (360 or 365 days per year divided by the Net credit sales of Company A during the year ended June 30, 20Y0 were $644,790. Its accounts receivable at July 1, 20X9 and June 30, 20Y0 were $43,300 and $51,730 respectively. Calculate the receivables turnover ratio.