Accounts Receivable Turnover (AR Turnover) is a metric used to measure how well a business is managing its debts. It shows how efficiently a company is collecting on its outstanding accounts receivable balances, or money that is owed to it. The higher the number, the better the business is doing at managing its receivables. AR Turnover gives you an indication of whether or not your company’s credit policies are working and whether or not creditors are paying in a timely manner. A good AR turnover ratio means that customers are paying their debts quickly, which gives the business more working capital and room for growth. On the other hand, a low turnover rate indicates that the business could be experiencing problems in billing or collection processes and may need to adjust its strategies.