Accounts Payable and Accounts Receivable Calculators

Below you will find descriptions and links to 11 free calculators for computing values associated with accounts payable and accounts receivable.

If you like, you may also use the search page to help you find what you need.

Accounts Payable to Average Daily Purchases Calculator

This calculator will compute the accounts payable to average daily purchases ratio, given the accounts payable balance and the amount of purchases.

As values of this ratio decline, a company's ability to obtain short-term credit improves.

Accounts Receivable by Sales Calculator

This calculator will compute a company's accounts receivable by sales ratio, given the company's accounts receivable balance and the amount of sales.

The accounts receivable by sales ratio can be monitored over time to evaluate changing sales patterns or to assess the effectiveness of accounts receivable management.

Accounts Receivable by Total Assets Calculator

This calculator will compute a company's accounts receivable by total assets ratio, given the company's accounts receivable balance and total assets.

The accounts receivable by total assets ratio can be monitored over time to evaluate marketing strategies or to assess customers' ability to pay.

Accounts Receivable Turnover Calculator

This calculator will compute a company's accounts receivable turnover rate, given the company's annual credit sales and average accounts receivable balance.

Larger values of the accounts receivable turnover rate indicate that the company collects money from its customers quickly, while smaller values indicate that the company collects money owed by its customers slowly.

Average Accounts Receivable Calculator

This calculator will compute a company's average accounts receivable balance over a specific time period, given the accounts receivable balance at the beginning of the time period and the accounts receivable balance at the end of the time period.

A company needs to know its average accounts receivable balance in order to determine its accounts receivable turnover rate.

Average Collection Period Calculator

This calculator will compute a company's average collection period (in days), given the company's accounts receivable turnover rate.

The average collection period is a measure of the average number of days that a company takes to collect on its accounts receivable. Smaller values of this measure indicate that a company collects money from its customers quickly.

Bad Debt to Accounts Receivable Calculator

This calculator will compute a company's bad debt to accounts receivable ratio, given the total value of the company's bad debts and its accounts receivable balance.

Increasing values of the bad debt to accounts receivable ratio over time may indicate that a company is incurring higher levels of realization risk in its accounts receivable, which can lead to future increases in bad debt write-offs.

Cost of a Discount Calculator

This calculator will compute the cost of offering a discount on accounts receivable credit terms, given a company's annual credit sales, the discount percentage, and the percentage of customers who are expected to capitalize on the discount.

The cost of offering a discount can be offset by investing the newly freed up capital from accounts receivable into other parts of the business.

Investment in Accounts Receivable Calculator

This calculator will compute a company's investment in accounts receivable, given the company's annual credit sales and the average number of days required for customers to pay for their purchases.

A high level of investment in accounts receivable can lower a company's profitability and drain its financial resources.

Return on Freed Cash Calculator

This calculator will compute the return on freed cash, given the accounts receivable balance before a policy change, the accounts receivable balance after a policy change, and the rate of return.

When a company enacts a change in policy to free up cash, such as by altering the credit terms for its accounts receivable, the newly available cash can be invested elsewhere to produce additional returns for the company.

Sales to Accounts Payable Ratio Calculator

This calculator will compute the sales to accounts payable ratio, given the accounts payable balance and the amount of sales.

Larger values of the sales to accounts payable ratio indicate that a company pays its suppliers quickly, while smaller values indicate that the company pays its suppliers slowly.