The receivable days formula measures the average number of days it takes a company to collect payments from its customers. It is calculated by dividing the average accounts receivable by the average daily credit sales. This metric is essential for assessing the efficiency of a company’s credit management and cash flow, helping businesses monitor and improve their receivables turnover.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
