How quickly do you turn receivables into cash?
Enter credit sales and your opening and closing receivables. See the turnover ratio, days to collect and the overdue share.
Your numbers
Example numbers are filled in. Replace them with yours.
30 for a month, 90 for a quarter, 365 for a year.
Optional. The part past its due date.
Receivables turnover
3x
Credit sales ÷ average receivables
A higher turnover means you collect faster. Compare it with your own past periods and your payment terms.
- Average receivables(Start + end) ÷ 2
- ₹4,00,000
- Days to collectDays in the period ÷ turnover
- 30 days
- Credit sales per day
- ₹13,333
- Overdue share of closing receivablesCash tied up in slow receivables: ₹1,00,000.
- 20%
Open matches bank credits to invoices, so you see what is collected and what is still outstanding.
A calculation for planning, not accounting, tax or investment advice. It uses only the numbers you enter, and everything is calculated in your browser: nothing you type leaves it.
Questions about this tool
How is receivables turnover calculated?
Turnover = net credit sales ÷ average receivables, where average receivables is the opening and closing balance added and divided by two. A result of 3 means you collected your receivables about three times in the period.
What are days to collect?
The days in the period divided by the turnover. With turnover of 3 over 90 days, you take about 30 days to collect.
Why use average receivables?
A single closing balance can be unusually high or low. The average of the start and end smooths that out.
How does this differ from DSO?
They measure nearly the same thing. DSO uses the closing balance and credit sales; turnover uses the average balance, so it moves less with a single month-end.
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