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Business

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

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What Is Accounts Receivable Turnover? Definition & Examples | InvoiceQuickly | InvoiceQuickly