How to Calculate Accounts Receivable Turnover (ARTO) in Excel
Gaining insights into a company’s financial health often involves analyzing key performance indicators, and the Accounts Receivable Turnover Ratio (ARTO) is among the most crucial. This metric provides a clear picture of how efficiently and quickly a business collects the money its customers owe from credit sales. A higher ratio is generally a positive sign, suggesting effective credit management and prompt collection processes, while a lower ratio might indicate potential issues with collecting debts or overly generous credit terms. Understanding and calculating this ratio in Excel is straightforward and provides valuable financial perspective.