A lower receivables turnover ratio generally indicates more favorable management of accounts receivable by company managers.

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A lower receivables turnover ratio indicates that it takes a longer time for a company to collect its accounts receivable. This may be a sign of poor management of accounts receivable, as it indicates that the company is not collecting its debts in a timely manner. A higher receivables turnover ratio, on the other hand, indicates that a company is collecting its debts more quickly, which may suggest better management of accounts receivable.

A Lower Receivables Turnover Ratio Generally Indicates More Favorable Management