The accounts receivable turnover ratio indicates how rapidly customers pay their bills.

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The accounts receivable turnover ratio is a measure of how quickly a company collects payment from its customers. It is calculated by dividing net credit sales by average accounts receivable. A high turnover ratio indicates that customers are paying their bills quickly, while a low ratio may suggest that there are issues with collections or credit policies.

The Accounts Receivable Turnover Ratio Indicates How Rapidly Customers Pay