What Is Accounts Receivable Turnover?
Ratio of net credit sales to average AR, showing collection speed.
Detailed Explanation
Higher turnover implies faster collection. Pair with DSO for a full picture.
Example
Turnover of eight implies receivables cycle roughly every month and a half.
Why It Matters
Signals whether invoicing and collections are effective.
Related Resources
Related Business Terms
Get invoicing tips that actually help
Join the InvoiceQuickly update list for practical invoicing advice and product news.
No spam, ever. Unsubscribe anytime.