Accounts Receivable Turnover

Measures the rate at which you collect on outstanding accounts.

Financial KPI Examples | Accounts Receivable Turnover

The Accounts Receivable Turnover KPI measures the rate at which you collect on outstanding accounts. The problem in maintaining a large bill for a customer is that you are essentially offering them an interest-free loan. Monitoring this metric is essential to ensure that accounts receivable is collecting on bills in a timely manner. This KPI is an essential piece of understanding your organization's cash flow process.

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