![]() What is Accounts Receivable Turnover Ratio? With a thorough understanding of its function, you can refine this ratio to ensure your company is being paid in a timely fashion, managing credit effectively, and has the working capital it needs to fund innovation, invest in growth, and cover unexpected expenses. One of the most commonly used metrics for determining the operatiodiginal efficiency and overall effectiveness of your company’s accounts receivable performance is the accounts receivable turnover ratio. ![]() Through the use of financial ratios and performance metrics, both large and small businesses can measure and improve accounts receivable performance over time. A healthy balance sheet begins with effective and efficient financial processes-particularly in accounts receivable (AR), where revenue is collected to provide the assets that support operations and organizational goals for competitive performance. Process improvement is an essential part of maintaining a successful business, and few areas offer more potential for increasing value than accounting.
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