Number of Days of Receivables represents the average number of days it takes for a company to collect its credit accounts. To calculate it, you simply divide 365 (the number of days in a year) by the accounts receivable turnover.
Some other related topics you might be interested to explore are Receivables Turnover, Operating cycle, and Net Operating Cycle.
This is an open-access Excel template in XLSX format that will be useful for anyone who wants to work as an Accountant, Financial Analyst, Corporate Finance Practitioner, or Finance Manager.
You can now download the Excel template for free.
Number of Days of Receivables is among the topics included in the Corporate Finance module of the CFA Level 1 Curriculum.
