What are some of the considerations management should make when assessing the accounts receivable turnover ratio?

Since the accounts receivable turnover ratio reflects how well management is doing in granting credit to customers,it is useful for comparing internally and with competitors.A high turnover in comparison with competitors suggests that management should consider using more liberal credit terms to increase sales.A lower turnover suggests management should consider stricter credit terms and more aggressive collection efforts to avoid having resources tied up in accounts receivable.