Finance
Calculate days sales outstanding
=B1/B2*365How it works in Excel
- B1 is accounts receivable.
- B2 is yearly credit sales.
- 365 turns the result into days.
- Lower means customers pay faster.
The idea in general
It shows how long customers take, on average, to pay.
What I assumed
- Receivables are in B1 and yearly sales are in B2.
Check the result on your own data before relying on it.