A higher receivables turnover ratio is a warning sign indicating that the company is allowing a longer time period for customers to pay.
BT: Comprehension

Question

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A higher receivables turnover ratio actually indicates that the company is collecting its accounts receivables more quickly, which is generally a positive sign. A lower receivables turnover ratio could indicate that the company is allowing customers a longer time period to pay, which could be a warning sign.

A Higher Receivables Turnover Ratio Is a Warning Sign Indicating