When you hear the phrase “A/R turnover in days,” it’s referring to the number of days that a company takes on average to pay its accounts receivable. It’s calculated by dividing the total amount of accounts receivable by 365 (the number of days in a year) and multiplying by 100. In other words, if you were to divide your company’s total accounts receivable by 365, then multiply that number by 100, you would arrive at the average number of days it takes for your company to pay its bills. Calculating this statistic is an important part of managing your company’s cash flow (its ability to pay its own bills in a timely manner) and can tell you how well your customers respect your business. If it seems like it takes longer than a few weeks for them to pay you, it might be time to get more aggressive with collecting on those debts.