It is expressed as a simple formula: Net Credit Sales ÷ Average Accounts Receivable = Accounts Receivable Turnover Ratio. Where. A company's net receivables are the total amount of money its customers owe minus what the company estimates will likely never be paid.Companies often extend credit to other businesses in the form of a note, or a short-term loan. Here is the AR turnover formula: Accounts Receivables Turnover Ratio. Net sales is calculated as sales on credit sales returns sales allowances.