Account Receivable Turnover (ARTO) is a key performance metric used to measure the effectiveness of an organization’s receivables management process. It measures how quickly customers are paying their invoices and reflects the efficiency of the organization’s ability to collect on debts. A higher ARTO ratio indicates that the organization is able to collect payments faster and more effectively, while a lower ARTO ratio suggests that the organization is struggling to get its customers to pay in a timely manner. An ideal ARTO ratio should be calculated on a regular basis as it can help provide insights into customer behaviors and help identify any potential adjustments or improvements for the receivables process. By monitoring this ratio, organizations can ensure they are always collecting funds efficiently, helping to maximize cash flow and profitability.