days receivable

Definition

A measure of the average time a company's customers take to pay for purchases, equal to accounts receivable divided by annual sales on credit times 365.

Use days receivable in a sentence

You should try to make sure that you keep a good record of exactly what you got with the days receivable.

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In an effort to enhance cash flow we have established more aggressive collection procedures aimed at decreasing the average days receivable on credit sales.

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Henry's Pizza customers usually paid with cash but the ones that used credit days receivable turn arounds were starting to add up, making it hard for Henry to make overhead, let alone profit.

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days payable days sales of inventory (DSI)