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Days’ receivables ratio (See Chapter 11 of the Vernimmen)
The days’ receivables ratio measures the average payment terms the company grants to its customers (or the average actual payment period). It is calculated by dividing the receivables balance by the company’s average daily sales (VAT inclusive). Days’ receivables ratio is also called days’ sales outstanding.
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Days’ receivables ratio (See Chapter 11 of the Vernimmen)
The days’ receivables ratio measures the average payment terms the company grants to its customers (or the average actual payment period). It is calculated by dividing the receivables balance by the company’s average daily sales (VAT inclusive). Days’ receivables ratio is also called days’ sales outstanding.
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