Calculate the receivables turnover, a ratio that measures how efficiently a company uses its assets by comparing the amount of credit extended to customers to the amount of sales generated.

The receivables turnover ratio is an important measure of how well a company manages its accounts receivable. It indicates how quickly a company collects payments from its customers. A higher turnover ratio is generally favorable as it suggests that the company is collecting payments more quickly, which improves its cash flow and working capital management.

The formula is as follows:

\[\text{Receivables Turnover Ratio} = \text{Net Credit Sales} / \text{Average Accounts Receivable}\]

Also known as: receivables efficiency, accounts receivable turnover.

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Calculate the Receivables Turnover in Python

The Receivables Turnover is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_receivables_turnover as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

receivables_turnover = toolkit.ratios.get_receivables_turnover()

Which returns:

  2021 2022 2023 2024 2025
AAPL 0.0579 0.0691 0.0753 0.0805 0.0879
TSLA 0.0353 0.0299 0.0334 0.0406 0.0474

Parameters

get_receivables_turnover accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Days of Sales Outstanding Operating Cycle Accounts Payables Turnover Ratio Days of Accounts Payable Outstanding Cash Conversion Cycle Cash Conversion Efficiency SGA to Revenue Ratio Fixed Asset Turnover Operating Ratio Research and Development Ratio Selling and Marketing Ratio General and Administrative Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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