calculate_receivables_turnover
Calculate receivables turnover: net credit sales divided by average accounts receivable — how efficiently a company collects money owed by customers. Formula: Receivables Turnover = Net Credit Sales / Average Accounts Receivable. WHEN TO USE: Use to assess collection efficiency and customer credit quality; a falling ratio signals slower collections or looser credit terms. WHEN NOT TO USE: Do NOT use total revenue if a large share of sales is cash (use credit sales only), and pair with days sales outstanding for intuition. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { receivables_turnover: number (e.g. 8.0 = 8.0x per year), inputs }. PARAMETERS: net_credit_sales (required): Net credit sales for the period, e.g. 800000. Must be >= 0. begin_receivables (required): Accounts receivable at period start, e.g. 95000. Must be >= 0. end_receivables (required): Accounts receivable at period end, e.g. 105000. Must be >= 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| end_receivables | Yes | Accounts receivable at period end, e.g. 105000. Must be >= 0. | |
| net_credit_sales | Yes | Net credit sales for the period, e.g. 800000. Must be >= 0. | |
| begin_receivables | Yes | Accounts receivable at period start, e.g. 95000. Must be >= 0. |