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Days Sales Outstanding Calculator (Days receivables)

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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.

Formula

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

Example

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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