Receivables Turnover Calculator
Enter net credit sales and average accounts receivable to compute the AR turnover ratio and days sales outstanding (DSO).
AR Inputs
$
Total sales made on credit (exclude cash sales and returns).
$
(Beginning AR + Ending AR) ÷ 2
$
$
Enter credit sales and AR values to see results.
AR Turnover Ratio
—
times per period
Days Sales Outstanding (DSO)
—
average days to collect payment
Daily Sales
—
credit sales per day
Avg AR Used
—
in calculation
DSO Benchmark
0d30d45d60d90d+
Summary
Enter net credit sales and average accounts receivable to compute the AR turnover ratio and days sales outstanding (DSO).
How it works
- Enter your net credit sales for the period.
- Enter beginning and ending accounts receivable, or enter average AR directly.
- Select the period: annual (365 days) or quarterly (90 days).
- Click Calculate to see the AR turnover ratio and DSO.
- Compare your DSO to industry benchmarks or your payment terms to assess collection efficiency.
Use cases
- Measure how quickly a business converts credit sales into cash.
- Benchmark AR collection performance against industry peers.
- Identify trends in payment delays before they impact cash flow.
- Support quarterly financial reporting and working capital analysis.
- Evaluate the effectiveness of credit policies and collection teams.
- Model the cash flow impact of shortening payment terms.
Frequently Asked Questions
Last updated: 2026-06-11 ·
Reviewed by Nham Vu