Any company, whether it is a small business of a start-up entrepreneur or an organization firmly standing on its feet, cannot do without such an economically sound asset as a receivable. 
What it means and how it affects the work of the enterprise as a whole is the topic of our article. We will find out how to determine the turnover ratio of receivables and analyze the production situation based on the calculations.
Definition
Accounts receivable is the debt of the purchasing companies for the purchased services or goods or their own employees who are accountable persons and with money on hand issued for various production purposes - the purchase of materials, transportation costs, and other production needs. In economic language, all of the listed counterparties that somehow interact with the organization are called debtors.
Often the survival or successful operation of an enterprise depends on the speed at which counterparties repay these debts. 
Therefore, these calculations are so important. The main calculated value is the receivables turnover ratio, which enables the economist to evaluate the effectiveness of work with customers and determine the terms of debt repayment.
How to calculate the turnover ratio of receivables?
The formula is as follows:
TOodz = V / O wed,
where In - received in the analyzed period revenue
ABOUT wed - the average balance of debt in cash.
The financial statements provide indicators of the amount of revenue, and the amount of the average balance is calculated as half of the addition of the initial and final balance of the debt.
This calculation determines the turnover ratio of receivables, expressed in the number of turns (or the number of times) of receiving payment from debtors in the amount of the average debt balance for the reporting period.
Calculation Example
For the first quarter, sales revenue (revenue) in the company amounted to 1.2 million rubles.
The balance of debt at the beginning of the year is 3,000,000 rubles, as of March 31 - 4,500,000 rubles.
Define the turnover ratio of receivables.
ABOUT wed = (3,000,000 + 4,500,000) / 2 = 3,750,000 rub.
TOodz = 12000000/3750000 = 3.2 times the debt was blocked.
Since the analysis is always a comparison with similar past periods, in order to present the dynamics of production development, we take information on indicators for the first quarter of last year.
For example, revenue then amounted to 9,000,000 rubles, the rest of the debt at the beginning of the year - 2,300,000 rubles, at the end of the quarter - 3,000,000 rubles.
TOodz = 9000000 / (0.5 * (2300000 + 3000000)) = 3.4 times per quarter the debt of debtors turned around.
For an economist, a decrease in the coefficient of 0.2 (3.2 - 3.4 = - 0.2) indicates a disadvantage in the enterprise, but he will draw final conclusions after a more detailed analysis of the functioning of the enterprise. It must be remembered that for this indicator clear standards are not defined, since it is greatly influenced by the specifics of the organization, and industry specifics, and the technology of work. For example, in trade organizations practicing the sale of goods on credit, debt of debtors is always high, and the value of its return is small, while in production associations the picture changes dramatically.
But in any case, an increase in the receivables turnover ratio indicates a faster repayment of consumer debt.
The indicator at times helps in the analysis of the organization’s activities, but the calculation complements the picture when the result is the amount of time in days during which the debts remain unpaid. 
This calculation option is also widely used if you want to determine the turnover ratio of receivables. The formula for this analysis for the year is as follows:
TOodz / day = 365 / Kodz
The value of days in the period is accordingly adjusted if another period is analyzed.
Example No. 2
Based on the data from the previous example, we get:
TOodz / day = 90 days (number of days in a quarter) / 3.2 = 28 days - required to repay debts in the 1st quarter of the current year.
TOodz / day = 90 days / 3.4 = 26.5 days - the average debt collection period in the 1st quarter of last year.
So, confirming previous calculations, the receivables turnover ratio calculated by this method shows an increase of one and a half days (26.5 - 28 = 1.5) in the terms of collecting debts of counterparties in comparison with the previous period. Based on this information, the economist will continue analytical research and draw the necessary conclusions.
