Final answer:
The Accounts Receivable Turnover Ratio signifies the frequency at which a company collects its receivables in a year.
Step-by-step explanation:
The indication of how many times during a year a company is turning over or collecting its receivables is known as the Accounts Receivable Turnover Ratio. This financial measure indicates how efficiently a company is managing its receivables and collecting payments from its customers. A higher ratio suggests that a company is collecting on its receivables more frequently throughout the year. To calculate the ratio, you divide the total net credit sales by the average accounts receivable for the same period.