Accounts Receivable Days Outstanding Calculator
Answers the Question
How long will it take to receive the money we've been promised?
Calculator for Accounts Receivable Days Outstanding
What Is the Accounts Receivable Days Outstanding?
Accounts receivable days outstanding helps provide an insight into how long it will take for a firm to be made whole.
Why Is it Important?
- he greater the number of days outstanding, the more money that the firm is effectively loaning out and that cannot be used for internal investment.
Formula(s) to Calculate Accounts Receivable Days Outstanding
- ACCOUNTS RECEIVABLE DAYS = (ACCOUNTS RECEIVABLE IN DOLLARS / ANNUAL REVENUE) * 365