Days' sales in receivables is a measure of a company's ability to collect their accounts receivable.

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Days' sales in receivables is a common financial metric used to assess the efficiency of a company in collecting payments owed to them. It is calculated by dividing the average accounts receivable balance by the average daily sales and then multiplying by the number of days in the period being measured. The resulting number represents the number of days it takes for a company to collect its receivables. The lower the number of days, the more efficient the company is in collecting its outstanding payments.

Days' Sales in Receivables Is a Measure of a Company's