Accounts Receivable Days On Hand Formula is a business metric used to measure the average time you take to collect payments from debtors. It’s a simple calculation – just take the total amount of outstanding debt due, divide it by an average daily sales rate and multiply it by the number of days in a year. This will give you the average number of days it takes a business to receive payments from its customers. The lower this number is, the better; it means that on average, your customers are paying up faster than expected and cash is flowing through your system quicker. With Accounts Receivable Days On Hand Formula, you can have greater visibility into your company’s financial performance, allowing you to make smarter decisions for your business.