Defines how many times during the reporting period the receivables turned into the revenue in the current account. The higher the figure, the faster the receivables are turning into cash. The decline shows that the debtors began to pay worse.

It is calculated by formula:

Average accounts receivables for the period is determined similarly to the average value of shareholders’ equity (see ROE).

The second possible variant is calculated in days.

In this case Days sales outstanding (DSO) defines how many days have passed since the date of shipment till the execution of payment.

It is calculated by formula:

Where can we get the figures?

Sales volume can be found in the line 1, Profit and loss account.

Accounts receivable (buyers) can be found in the line 2.4, Section 2 “Current assets”, Balance sheet.