Accounts receivable turnover ratio of 7.8 or more is generally more appropriate, is the average value of the community, this value is above 15.2 is good, above 24.3 is excellent. It should be noted that the accounts receivable turnover rate of different industries will have a big difference: for example, the average value of the construction industry is 4.2, the average value of the real estate industry is 3.8, the average value of the wholesale and retail industry is 8.9, the average value of the accommodation and catering industry is 8.3, and the average value of the light industry is 6.0.

The higher the accounts receivable turnover rate the better, which means that the company's payback speed is fast, the average payback cycle is short, the loss of bad debt less, fast flow of assets and strong solvency. Accordingly, the shorter the average collection cycle, the better. If the company's actual collection days exceeds the company's stipulated days for accounts receivable, it means that the debtor owes money for a long time and has low credit reliability, which increases the risk of bad debt loss. It also means that the company's collection is not effective, which makes the assets become bad debts or even bad debts, and the current assets are not liquid, which is very unfavorable to the normal production and operation of the company. On the other hand, if the company's average payback period is too short, it means that the company pursues a tight credit policy and the payment terms are too harsh, which will limit the expansion of the company's sales. Especially when the cost (opportunity gain) of this restriction is greater than the cost of credit sales, it will affect the profitability of the company.