oboloo Glossary

Higher Accounts Receivable Turnover

oboloo Glossary

Higher Accounts Receivable Turnover

Higher Accounts Receivable Turnover means that the number of times a business is able to collect money it’s owed in a year is higher than average. It’s an important measure of how well a business is able to effectively manage its invoicing and accounts receivable process, as collecting money quickly allows them to reinvest it back into their operations and stay competitive. High turnover also indicates that customers are satisfied with a company’s services, which can also be beneficial for future revenues and profit margins.