This measure calculates the average number of days sales outstanding in accounts receivable for a business entity. Average days sales outstanding is calculated as 360 days divided by the ratio of net sales divided by the average month-end trade accounts receivable balance. Exclude all unbilled receivables when calculating this measure. It is part of a set of Cycle Time measures that help companies analyze the duration of the process "process accounts receivable (AR)" process.
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Days sales outstanding in accounts receivable
Cycle time is the total time from the beginning of the process to the end. This includes both time spent actually performing the process and time spent waiting to move forward.
The metric value which represents the 50th percentile of a peer group. This could also be communicated as the metric value where half of the peer group sample shows lower performance than the expressed metric value or half of the peer group sample shows higher performance than the expressed metric value.