Accounts Receivables Turnover Ratio - Meaning, Formula, Calculation & Interpretations

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  • Опубликовано: 23 янв 2025

Комментарии • 35

  • @sakshidharwa4074
    @sakshidharwa4074 3 года назад +3

    Absolutely awesome.i have wasted 2-3 hrs just trying to understand the logic behing these ratios and formula and afted watching this i have finally got clear understanding on how these formulas are made and what they interpret.now i dont have to memorise the formula.
    Thanks a lot

  • @wallstreetmojo
    @wallstreetmojo  3 года назад +1

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    • @GTran05
      @GTran05 4 месяца назад

      Hi there, this link is not usable anymore

  • @narayanbista490
    @narayanbista490 3 года назад +1

    This video was very step by step to learn this ratio in detailed manner thank you for such an amazing video.

  • @poojaborkar1985
    @poojaborkar1985 3 года назад +1

    Best video and great step by step explanation. Excellent Work.

  • @jasonfairbanks4714
    @jasonfairbanks4714 2 года назад

    Excellent explanation. Best I’ve seen! Thank you!

  • @kesifeldman3378
    @kesifeldman3378 3 года назад

    beautifully explained the meaning of Accounts Receivables Turnover Ratio

    • @saba1551
      @saba1551 3 года назад

      Hello kesi, what r u learning means doing any college or what??

  • @ChefExecutiveOfficer
    @ChefExecutiveOfficer 9 месяцев назад +3

    If its collecting 1600 worth of receivables 5 times, it means, it has already collected the 8000 given as credit.
    Then why receivables seen as 1600, shouldnt it be zero. Pls clear my doubt

  • @KiranJames-n9r
    @KiranJames-n9r Год назад +1

    Hi! Credit Sales means product or service sold on credit basis wherein you are yet to receive the amount. Account receivables means amount not received but yet to be received. So in your example when you show 1200 as receivables, does it mean the amount has already been received?

  • @karencadenas1707
    @karencadenas1707 11 месяцев назад

    Simply Excellent !

    • @wallstreetmojo
      @wallstreetmojo  10 месяцев назад

      Your comment made our day, thank you!

  • @jyotikrupashankarsingh2582
    @jyotikrupashankarsingh2582 3 года назад

    Very Interesting! Thanks for the Video.

  • @MunenderChauhan-b6g
    @MunenderChauhan-b6g Год назад

    Hi, If opening balance and closing balance are 0 or missing any one of them then how to calculate average debtors. Please help.

    • @Startend1234
      @Startend1234 Год назад +1

      If opening is not provided closing receivables will be considered as average receivables.

    • @MunenderChauhan-b6g
      @MunenderChauhan-b6g Год назад

      THANKS@@Startend1234

  • @kyafawi
    @kyafawi 2 года назад

    very useful.
    I have a question regarding the construction industry:
    shall we include the retention amount which will be paid at the end of the contract in the receivable and deduct the advance paid by the client to get the net account receivable ?
    what about the unbilled revenue which is included in the revenue at the end of the Year based on the percentage of completion method?

  • @annabelcuadro2731
    @annabelcuadro2731 4 месяца назад

    thank you po!

  • @daniellayton8679
    @daniellayton8679 3 года назад

    good explanation

  • @kavishaggarwal110
    @kavishaggarwal110 3 года назад +1

    Sir can you please make video for class 11 of accounts chapter cash book . Hope you will help me to understand cash book

  • @mariadurbin8340
    @mariadurbin8340 3 года назад

    thanks for the video.

    • @saba1551
      @saba1551 3 года назад

      Hi there, r u an accountant??

  • @raghavchoudhary1656
    @raghavchoudhary1656 3 года назад

    Sir please explain me one thing related to the numerator of quick ratio: my doubt is you had previously said about current ratio that if a company has the ratio less than 1 it's a negative one. So in this ratio, numerator is basically getting reduced(means the inventory is now not getting considered), so why again during analysis we take 1 to compare whether the company is good or bad. Because the numerator is basically reduced and now to get a better comparison we should take less than 1, like instead of 1 take as 0.8 or something...

    • @wallstreetmojo
      @wallstreetmojo  3 года назад +1

      Hi Raghav, thanks for your question. In the quick ratio we were just evaluating whether your quick assets are sufficient enough to cover current liabilities. Strictly only going by this, I made a comment that less than 1 may not be good enough. I am very happy to read your comment as you are right !. In the overall scheme of things and depending on the industry, 0.8 or 0.7 may also be good enough.

    • @raghavchoudhary1656
      @raghavchoudhary1656 3 года назад +1

      @@wallstreetmojo got it sir. What you wanted to say 👍😊

  • @leahnightingale3369
    @leahnightingale3369 3 года назад

    good example

  • @AmanAgarwal-DMDM
    @AmanAgarwal-DMDM 3 года назад +1

    Sir could you please also tell us in which industry we can expect a higher account receivables turnover ratio and in which industry we can expect the lower ratio? and similarly could you please connect these ratios which different industries?

  • @ksvirk3955
    @ksvirk3955 3 месяца назад

    1600 is not already collected, its pending collection thats why its receivable, 6400 collected leaving 1600 still pending…i m bit confused with your explanation because of this.

  • @stockMinesIndia
    @stockMinesIndia 2 года назад

    Hiii sir