Accounts Receivable Turnover Calculator

Calculate AR turnover ratio and days sales outstanding.

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AR Turnover

Enter total credit sales and average accounts receivable.

AR turnover ratio
0.0x
Days sales outstanding: 0
Avg accounts receivable
$0
AR turnover ratio
0.0x
Days sales outstanding
0
Collection efficiency
β€”

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Total credit sales ($)$1,000,000
Beginning AR balance ($)$80,000
Ending AR balance ($)$120,000
ResultValue
AR turnover ratio10.0x
Avg accounts receivable$100,000
Days sales outstanding37 days
Collection efficiencyGood β€” within standard terms

Values shown are produced by this page in your browser; change any input to update them.

How to use the AR Turnover

  1. Total credit sales ($) β€” default $1,000,000
  2. Beginning AR balance ($) β€” default $80,000
  3. Ending AR balance ($) β€” default $120,000
  4. Press Calculate to update the results instantly.

Frequently asked questions

Higher is better β€” it means you collect from customers quickly. 8-12 turns a year is healthy for most B2B businesses, while a ratio below 4 usually signals a collection problem.
AR turnover = total credit sales Γ· average accounts receivable. Days sales outstanding = 365 Γ· AR turnover, so 10 turns a year equals 36.5 days to collect.
Invoice the day you deliver, offer a small early-payment discount, check credit before extending terms, and chase overdue accounts on a fixed schedule instead of waiting.

Sources & references