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Calculate Accounts Receivable Days

oboloo Glossary

Calculate Accounts Receivable Days

Calculate Accounts Receivable Days is a business metric that measures how quickly your customers are paying you. It’s calculated by dividing the amount of accounts receivables (your unpaid bills) in a given period by the total revenues generated and multiplying it by the number of days in the same period – essentially giving you an idea of how long, on average, it takes for your customers to pay off their debts. By monitoring this metric, you can gauge how well your invoicing strategies are working and make adjustments for better cash flow in the future.

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