Days Sales Outstanding Calculator (Days receivables)


What is Days of Sales Outstanding?

Days of Sales Outstanding, also known as Days of Receivables, is an estimate of collection period. It illustrates how long it takes a company to collect accounts receivables in relation to their level of sales.


Days of Sales Outstanding = Accounts Receivable / (Annual Sales / 365)


A company has accounts receivable of $3,000 and annual sales of $16,000.

Days of Sales Outstanding = $3,000 / ($16,000 / 365) = $3,000 / $43.836 = 68.45

Therefore, this company has 68.5 days of sales outstanding.

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