Account Receivables Turnover Ratio (ART) is an important figure for businesses that track how quickly customer invoices are paid. It measures the speed of a company’s credit-based sales; i.e., how often customers pay their bills on time. ART takes the value of a company’s net credit sales over a specific period of time, and divides it by the average amount of account receivables during that same period. Managers can use this measure to assess the efficiency of the credit department, and make decisions about pricing, discounting, and cash flow management. The higher the ratio, the more efficiently a business is managing its customer accounts receivable.