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How do you estimate a company’s health before choosing to invest in its stocks? How about we say that there is a way to quantify the overall company’s effectiveness? A tool to estimate its ability to manage its line of credit process. Debtors turnover ratio, also known as accounts receivables turnover ratio or efficiency ratio, is your kin. It quantifies a company’s effectiveness in collecting outstanding balances from clients. Let us understand the concept of the debtors turnover ratio formula and example of debtors turnover ratio also how it is beneficial for you.
