Accounts receivable turnover ratio

Accounts receivable turnover ratio represent that how fast a company collects its all account receivables or debts

EXAMPLE
                                                  Sales
Receivables Turnover =     -------------------------------
                                          Accounts Receivables
For XYZ company:
                                        $800
Receivables Turnove =       ----------  =  4 times
                                        $200
Therefore XYZ company collected its outstanding credit accounts and reloaded the money 4 times during the year.
(Assuming all the sales are credit sales. If not, we use only credit sales for this ratio)