Accounts receivable days, also known as Days Sales Outstanding (DSO), is a measure used by companies to estimate the average number of days it takes to collect revenue after a sale has been made. It is calculated by dividing accounts receivables by average daily sales.Average daily sales is calculated by dividing total sales by the number of days in period, typically representing the total number of days in the year or quarter.
Learn Accounts Receivable Days with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Accounts Receivable Days through hands-on practice and real-world examples.