The number of days' sales in receivables is an estimate of the length of time the accounts receivables have been outstanding.

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The number of days' sales in receivables is a measure of the average number of days it takes a company to collect payments from its customers. It is calculated by dividing the accounts receivable balance by the average daily sales. This estimate can help companies assess the effectiveness of their credit and collection policies, and identify potential issues with slow-paying customers or inefficient collections processes.

The Number of Days' Sales in Receivables Is an Estimate