Accounts Receivable Turnover Days - Days In Receivables Ratio
We already discussed about Accounts Receivable Turnover Ratio in our previous article but here we study about Accounts Receivable Turnover Days. Accounts Receivable Turnover Days Definition What is Accounts Receivable Turnover Days? This ratio shows how many days in a year the company takes to collect debts due from its customers. The Accounts Receivable Turnover Ratio only shows how many times the company collects its debts from customers but fail to show the exact days in collecting dues from customers and hence we can easily the performance of the management of the company in receiving debts from its customers within the time frame or not. This ratio is also known as Debtors Turnover Ratio In Days or Average Collection Period or Days In Receivables. Accounts Receivable Turnover Days Formula 365 / Accounts Receivable Turnover Example Let say the company Accounts Receivable Turnover is 2....