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Receivables Collection Period Average Accounts receivable x 360 Sales The days' sales in receivables measure the number of days it takes, on average to collect accounts receivable based on the yearend balance in accounts receivable This ratio can assess the extent of customers paying on time If the average collection period increases fromThe ratio to determine number of days' sales in receivables is as follows The numerator is 365, the number of days in the year Because the accounts receivable turnover ratio determines an average accounts receivable figure, the outcome for the days' sales in receivables is 59 Conceptually, what does the days' sales in receivables ratio measure for a firm? What Is Dso Why Dso Is Vital For Accounts Receivable Billtrust How to calculate the number of days sales in receivables