Evaluating AR management with the AR Turnover Ratio (ARTR) involves calculating the ratio of net credit sales to average accounts receivable during a specific period. A higher ARTR indicates more efficient management of receivables, reflecting faster turnover and effective collection efforts. Monitoring ARTR over time helps assess the effectiveness of credit and collection policies, guiding strategic decisions to improve cash flow and reduce outstanding balances.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
