Accounts receivable ratios measure the speed at which a company is collecting payments from its customers, which gives insight into financial performance and the health of the accounts receivable system. They help business owners understand how efficient their collection process is and identify any potential cash flow issues. In essence, these ratios measure the amount of time it takes for a company to be paid for services or products that have already been delivered. A low Accounts Receivable Ratio indicates that customers are paying invoices in a timely manner, whereas a high ratio could indicate financial problems and difficulties with collecting payments. Keeping an eye on this ratio can help to ensure that a business maintains a healthy cash flow.