Datreal calculates this ratio from figures reported for the same period.
Average days customers take to pay: receivables divided by revenue, times 365. Fewer days is better, so rank 1 is the fastest-paid company.
What It Means
Why It Matters
- Use the ratio to compare similar companies and reporting periods.
Across Datreal Countries
This page explains the shared concept. National legal effects may differ. Check official records before acting.
Common Questions
How should this ratio be compared?
Use the ratio to compare similar companies and reporting periods.
Related Terms
Business Accounts Receivable
Accounts receivable are amounts customers or other parties owe a company for recognised transactions. They are financial assets, but collection…
Business Financial Ratio
A financial ratio compares two accounting or financial values. Ratios help show liquidity, leverage, profitability, efficiency, or growth, but their…
Business Revenue
Revenue is the income a business earns from ordinary sales of goods and services during a reporting period, before expenses are deducted.