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Our text defines accounts receivable turnover as a measure of how frequently a company converts its receivables into cash. It is calculated as Net Sales

Our text defines accounts receivable turnover as a measure of how frequently a company converts its receivables into cash. It is calculated as Net Sales divided by average accounts receivable. A high accounts receivable turnover implies that a companies accounts receivables are collected rather quickly. A low accounts receivable turnover would imply the exact opposite. Response

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