Good Accounts Receivable Turnover Ratio is an important financial metric used to measure a company’s efficiency in collecting its receivables. This ratio helps businesses understand the time it takes for customers to pay their invoices and provides insight into credit policies. A good account receivable turnover ratio indicates that a company is collecting payments quickly and efficiently, generating cash flow and maximizing profitability. Companies with a high accounts receivable turnover ratio tend to have lower bad debt losses and improved liquidity.