The accounts receivable turnover ratio is used to evaluate how well a company does in collecting its accounts receivable.

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The accounts receivable turnover ratio is indeed used to assess a company's ability to collect its accounts receivable in a timely manner. The formula for calculating this ratio is: Net Sales / Average Accounts Receivable. The higher the turnover ratio, the better the company is at collecting its outstanding payments.

The Accounts Receivable Turnover Ratio Is Used to Evaluate How