Days Receivables Outstanding measures the number of days it takes a company to collect cash generated from sales. This is generally the average number of days between invoicing a customer and collecting payment.
Calculation
| Days Receivables Outstanding |
| = |
|
where:
- Accounts Receivable = Average Accounts Receivables (= average of beginning and ending receivables)
- Revenue = Annual Revenue
Unit of measure: Days (Calendar days)
Alternative names: Days Sales Outstanding.
Statement of Financial Position
Community Importance
Rating:
Hierarchy
| ID | Name | Level | x | | AE1 | Cash Conversion Cycle | 1 | AE1 |
| AE11 | Days Receivables Outstanding | 2 | AE11 |
| AE111 | On-time Receipts Ratio | 3 | AE111 |
| AE112 | Late Receipts Ratio | 3 | AE112 |
| AE113 | Uncollectable Receivables Ratio | 3 | AE113 |
Term(s)
| ID | Name | Clear | x | | AR | Accounts Receivable | | AR |
| CSFP | Statement of Financial Position | | CSFP |
Days Receivables Outstanding Cash Conversion Cycle 51100 2 {{{keywords}}} {{{description}}}
