To evaluate a company’s ability to analyze its account receivables, accounts receivable turnover ratio is used. This accounting ratio is calculated by simply dividing Net credit sales by Average Accounts Receivable for the duration during which the sales were made by the company. Not only the turnover but also receivable levels are also assessed based on how long it takes to collect the receivable. This can be taken as an alternative to the accounts receivable turnover ratio with more direct interpretation. The ratio called days to collect account receivable is calculated by dividing total or 365 days by accounts receivable turnover.