The receivable turns or receivable turnover is a great financial ratio to learn when you are analyzing a business or a stock because common sense tells you the faster a company collects its accounts receivables, the better. The sooner customers pay their bills, the sooner a company can put the cash in the bank, pay down debt, or start making new products. There is also a smaller chance of losing money to delinquent Fortunately, there is a way to calculate the accounts. number of days it takes for a business to collect its receivables. The formula looks like this: Receivable Turns Calculation Credit Sales Average Accounts Receivables