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Accounts Receivable (A/R) Turnover Ratio: Definition & Calculator
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WebAug 8, 2023 · The A/R turnover ratio formula is: Key Takeaways. A/R turnover represents how fast the business collects its receivables. Generally, a higher turnover means that receivables are collected quickly, while a low turnover means otherwise. A/R turnovers aren’t conclusive in assessing your business’ condition.
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