Accounts Receivable Turnover (ART) is a financial ratio used to measure how efficiently a company collects on its credit sales or how quickly its customers pay their debts.It's calculated by dividing total sales by the average accounts receivable during a certain period.A higher ART indicates that the company is efficient at collecting its credit, while a lower ratio could mean problems with cash flow or collection processes.
Learn Accounts Receivable Turnover with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Accounts Receivable Turnover through hands-on practice and real-world examples.