Accounts receivable turnover measures the ability to collect cash from a company's credit customers.

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Accounts receivable turnover is a financial ratio that measures a company's efficiency in collecting cash from credit customers. It is calculated as net credit sales divided by the average accounts receivable balance during a given period. A higher accounts receivable turnover ratio indicates that a company is more effective in collecting cash from its credit customers.

Accounts Receivable Turnover Measures the Ability to Collect Cash from a Company's