Account Receivable Days Turnover (ARDT) is a measurement of how effectively a business collects the money owed to it by its customers. It is calculated by dividing the total number of days in an accounting period by the average Accounts Receivable balance during that period. The lower the ARDT, the better the business’s cash flow performance and the more efficiently it can collect payments from its customers. Put simply, ARDT is a measure of how quickly a business is able to convert sales into available cash. By carefully tracking this key financial metric, businesses can assess their credit policies and ensure they are collecting money owed to them as quickly as possible.