The accounts receivable turnover is used for which kind of evaluation?
A) The ability of a company to pay its current liabilities
B) The ability of a company to collect its receivables
C) The overall profitability of a company
D) Evaluating stock in a company from an investor's perspective

Question

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The accounts receivable turnover is a ratio that measures the ability of a company to collect its receivables. It indicates how many times during a given period the company collects its average accounts receivable balance. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is a positive sign for its financial health.

The Accounts Receivable Turnover Is Used for Which Kind of Evaluation