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Accounts Receivable Turnover

The accounts receivable turnover is a financial metric used to measure how efficiently a company is collecting the money owed by its customers. It is calculated by dividing the net credit sales by the average accounts receivable during a given period. The ratio indicates the number of times a company can collect its average accounts receivable balance during a given period. A higher ratio is favorable as it indicates that the company is collecting its receivables quickly, which means that it has cash available to support its operations and growth initiatives. Conversely, a lower ratio can indicate that the company is struggling to collect its receivables, which can affect its liquidity and profitability.

Additional Details

Metric Name Type Default Period Type
ar_turnover fin_metric FY

Formatting Details

Data Format Display Format Unit
float number float