Days Sales in Receivables

Online Calculators for Business & Investment

Days Sales in Receivables

This is one of accofina's favourite ratios, especially when it comes to efficiency management. Why? Because it has the ability to turn accounting and financial data from the financial statements into a result that is expressed in time, that is, in days.

Days Sales In Receivables tells you how many days on average it takes to turn your accounts receivable balance into cash. Therefore it measures the efficiency of your collections policy and department.

While this ratio is not always completely under the control of management, is does allow a level of cash flow planning which aids in management decision making. In other words, if your Days Sales in Receivables result is a certain figure, then you can adjust your own cash spending to accommodate when you expect to turn your accounts receivable balance into cash.

A result of 35 “Days” means that on average it takes 35 days to turn your accounts receivable balance into cash; or 35 days, on average, to collect your credit sales.

Days Sales in Receivables Calculator

The calculator asks for:
Sales Revenue, which is found in the Income Statement.
Accounts Receivable at the Start of Period, which is found in the previous Balance Sheet.
Accounts Receivable at the End of Period, which is found in the current Balance Sheet.

Sales Revenue ($):

Accounts Receivable at
Start of the Period ($):

Accounts Receivable at
Ens of the Period ($):

Days Sales in Receivable (Days):

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