Result
Turnover, times per year
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Receivables turnover = revenue for the period ÷ accounts receivable. A value of 8 means receivables "turn over" 8 times a year — on average, each round of sales gets collected and replaced by new receivables eight times annually.
This is the same information as DSO (average days customers take to pay), just in different units: turnover = 365 ÷ DSO, and vice versa. Higher turnover means the company collects from customers faster — the same thing a lower DSO shows.
Which unit is more convenient — turns per year or days — comes down to preference and context: turns are more intuitive when comparing against inventory or capital turnover, while days (DSO) are more intuitive for operational planning ("how many days until the money arrives"). Both are calculated from the same underlying data.