Days Receivable measures how long on average it takes for the trade debtors to pay for goods or services sold to them on credit. The lower days it takes, the better for the business. The higher the number of days, the slower it takes for the business to turn its receivables into cash.
Days Receivable measures how long on average it takes for the trade debtors to pay for goods or services sold to them on credit. The lower days it takes, the better for the business. The higher the number of days, the slower it takes for the business to turn its receivables into cash.
It is calculated as below: