Accounts receivable turnover ratios, or ARTs, measure the average number of times a company is able to collect its accounts receivable within a given period. Put simply, it measures how quickly a company can turn its receivables into cash. This metric is important for businesses as it shows how well they manage their customers’ payments and helps them to gauge the efficiency with which they extend credit to customers. It also reflects on the financial health of the company, as slower collection periods could lead to problems in the future if not addressed. Ultimately, having a good accounts receivable turnover ratio means that a company is creating consistent revenue from its customer base, allowing it to reinvest in future growth.