The A/R Turnover Ratio is an important business metric used to measure the performance of a company’s accounts receivable. It looks at the rate at which a business collects payments from its customers and examines how quickly cash is coming in and out of the company. By understanding this ratio, businesses can better manage their cash flow and make sure they are receiving money owed as quickly as possible. This helps to ensure that debts are paid on time and liquidity levels remain healthy.