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Thinking of it another way: How many times can the company turn over its Accounts Receivable?
Thinking of it another way: How many times can the company turn over its Accounts Receivable? What this basically means is: How many times can the company take its old Accounts Receivable, collect them, and then replace them with new Accounts Receivable; and then, collect them and replace with new; collect and replace with new? So, on average, how many times during the year is the company able to do that?