Accounts Receivable Calculator
Calculate your accounts receivable metrics including Days Sales Outstanding (DSO), turnover ratio, and cash flow projections. Optimize your business’s credit management and collections.
Step 1: Receivable Metrics
Understanding Accounts Receivable
Accounts Receivable (AR) represents money owed to your business by customers. Efficient AR management improves cash flow and reduces bad debts.
Step 2: Collection & Risk Analysis
Key Metrics Explained
DSO (Days Sales Outstanding) measures average collection time. Lower DSO means faster cash conversion. Turnover ratio shows how efficiently you collect receivables.
Accounts Receivable Analysis
Days Sales Outstanding (DSO)
Industry Comparison
| Industry | Average DSO | Your DSO | Performance |
|---|
Interpretation
A lower DSO than industry average indicates efficient collections. Higher DSO suggests potential cash flow issues or lenient credit terms.
Accounts Receivable Aging Analysis
Key Formulas
DSO = (Average Accounts Receivable ÷ Annual Credit Sales) × 365
AR Turnover = Annual Credit Sales ÷ Average Accounts Receivable
Average AR = (Beginning AR + Ending AR) ÷ 2
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