Taking sales and dividing them by A/R finds the A/R Turnover Ratio. This gives the interested parties a more visible picture of how many sales are made on account while the rest are in cash. A higher ratio is ideal because it shows a company that receives cash instead of waiting on accounts to be realized. Tiffany’s ratio is underperforming compared to its competitors. This does not work in Tiffany’s favor because it shows a low cash flow from sales, which constricts the company’s flexibility in cash and drive potential investors away. Reasons for this low ratio is fewer customers coming in or not receiving payment of accounts as quickly as expected.