Accounts Receivable Turnover (ART) Ratio is a financial metric that measures how quickly businesses receive payments from customers. By looking at the ratio, you can assess a business’s ability to effectively manage its debtors or accounts receivable. A higher ART Ratio indicates more efficient credit management and a healthier cash flow for your business. Generally, a healthy ART Ratio should be between 5-7 times per year, with anything above 8 being ideal. It’s important to note that the ART Ratio changes depending on the industry and the economic cycle, so it’s important to have an understanding of what is typical in your sector. With the right credit management procedures in place and an accurate assessment of the ART Ratio, your business can remain profitable and successful.