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

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A lower receivables turnover ratio indicates that the company is taking longer to collect its receivables, which may suggest that there are issues with credit policies or debt collection. Conversely, a higher receivables turnover ratio suggests that the company is collecting its receivables more quickly, which indicates efficient management of accounts receivable.

A Lower Receivables Turnover Ratio Generally Indicates More Favorable Management