Days Sales Outstanding
Browse all terms in GlossaryDefinition
The average number of days it takes for a company to collect outstanding receivables.
Formula
Days Payable Outstanding = 91.5 x (Accounts Receivable/Sales)
Note: YCharts uses quarterly data instead of annual data for this calculation. Accounts receivable and sales refer to accounts receivable and sales respectively at the end of the quarter, hence the 91.5 multiplier instead of 365.
Related Terms
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|---|---|---|---|---|
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