The accounts receivable turnover ratio indicates how often accounts receivable are received and collected during the period.

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The accounts receivable turnover ratio is a financial ratio that measures the number of times a company's accounts receivable are collected during a specific period. It is calculated by dividing the net credit sales by the average accounts receivable balance. A higher ratio indicates that a company is collecting its receivables more frequently, which is generally seen as a positive sign of efficient cash flow management.

The Accounts Receivable Turnover Ratio Indicates How Often Accounts Receivable