Accounts Receivable Days Formula

AR days formula measures how quickly sales convert to cash. Automation tracks metrics and identifies collection improvements.

What is the Accounts Receivable Days Formula?

The accounts receivable days formula (also called Days Sales Outstanding) calculates how many days it takes a company to convert sales into cash. Formula: (Accounts Receivable / Net Revenue) × Number of Days. Lower ratios indicate faster collection. Automated analysis tracks this metric continuously and identifies trends affecting working capital.