The accounts receivable turnover ratio can be used to assess a firm's solvency.

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The accounts receivable turnover ratio is a measure of a company's efficiency in collecting its accounts receivables. It is not directly related to the firm's solvency, which refers to its ability to meet its long-term financial obligations. Solvency is usually assessed using measures such as the debt-to-equity ratio or interest coverage ratio.

The Accounts Receivable Turnover Ratio Can Be Used to Assess