Accounts receivables turnover is a measure of how efficiently a business collects on its customer invoices. The formula to calculate this ratio is simple: divide net accounts receivable during the period by the average accounts receivable balance for the same period. A high number indicates that customers are paying their bills quickly and the business is collecting quickly. A low number could be an indicator that the company isn’t doing a good job of collecting payments in a timely manner, which could negatively impact bottom-line profits.