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Accounts Receivable Turnover Days

oboloo Glossary

Accounts Receivable Turnover Days

Accounts Receivable Turnover Days (ARTD) is a business metric that helps to measure the efficiency of an organization’s credit and collections process. ARTD is calculated by taking the total amount of accounts receivable for a period and dividing it by the average daily sales for the same period. This number indicates how quickly the company turns over its accounts receivable, or how often and quickly customers pay their debts. A lower ARTD number generally means the company is efficient in terms of collecting payments from customers, while a higher number suggests that the company has room for improvement in its credit and collections policies.

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