The Days Receivable formula calculates the average number of days it takes for a company to collect its accounts receivable. It is computed as Days Receivable = (Average Accounts Receivable / Average Daily Credit Sales). This metric helps businesses assess their efficiency in collecting outstanding payments, providing a snapshot of cash flow management and the effectiveness of credit and collections processes.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Digital Credit: Onboarding the Customer
World-class Digital Order-To-Cash: Transforming Accounts Receivables For the New Normal
Improving Order-To-Cash Efficiency Using Emagia Analytics
The Journey to Smarter Accounts Receivable Management with AI
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
