Accounts Receivable Turnover Rate

Efficiency: accounts receivable turnover ratio 

This ratio looks at a business's effectiveness in collecting the money customers owe. 

What does the accounts receivable turnover ratio mean?

A low accounts receivable turnover ratio suggests that the business takes longer to collect payments, which could result in a higher risk of bad debt and cash flow problems. It's crucial for businesses to address these issues and improve the ratio to avoid the risk of unpaid debts.