Days Receivables

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Days Receivables

Dictionary Definition

This expresses the average number of days that receivables are outstanding. Generally, the greater number of days outstanding, the greater the probability of delinquencies.



Why it Matters to You

A high number shows that a company is selling its product to customers on credit and waiting a long time to collect the money. This can lead to cash flow problems. A low value means that it takes a company fewer days to collect its accounts receivable. That company is promptly getting the money it needs to create new business.


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