Compute Accounts Receivable Turnover is a business and accounting term that measures the efficiency of a company in collecting its receivables. It helps to determine how quickly a company can turn its accounts receivable into cash, and ultimately assess its ability to generate profit from sales. The ratio is calculated by dividing the net credit sales for a given period by the average accounts receivable over the same time period. A high turnover ratio indicates that customers are paying promptly and efficiently, while a low turnover could indicate a need to investigate potential problems with collections or customer satisfaction.