StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
StockEdge Blog
  • Trending Stocks
  • Insights
  • Technical Analysis
  • Fundamental Analysis
  • StockEdge Tutorials
  • Mutual Fund
No Result
View All Result
  • Trending Stocks
  • Insights
  • Technical Analysis
  • Fundamental Analysis
  • StockEdge Tutorials
  • Mutual Fund
No Result
View All Result
StockEdge Blog
Home Tutorials

Days of Receivables

StockEdge by StockEdge
October 22, 2018 - Updated on February 24, 2023
Reading Time: 3 mins read
936
VIEWS
Share on FacebookShare on XShare On WhatsApp

Table of Contents

  • Let’s discuss about days of receivables:
    • Analyse Financial Ratios – 10 Ratios for Successful Business
    • Impact of Days of Receivables
    • Exceptions
    • Formula
    • Bottomline

Let’s discuss about days of receivables:

An often used parameter when it comes to studying the fundamentals of a company is financial ratios. A financial ratio is a representation of selected numerical values taken from a company’s financial statements. Financial ratios help in deciding the innate strength of the company. There are a lot of ratios used for valuation analysis of a company. We will understand how days of receivables impact the financials of a company.

Also Read :

Analyse Financial Ratios – 10 Ratios for Successful Business

 

You can also watch the video below on Everything you want to know about Days of Receivable:

Impact of Days of Receivables

Days of receivables is the average number of days that a company takes to collect the payment after a product has been sold or the services have been delivered. It simply means the time taken to receive the cash after the sales has been completed. It illustrates how well a company’s accounts receivables are being managed and how fast it is receiving the complete payment.

Exceptions

Historical data may not always be a fool proof way towards future perception as the industrial and economic conditions may wary every year especially for the cyclical stocks. The past payment history of creditors is no guarantee of the future.

Formula

Days of Receivables= (Average Accounts Receivable/Credit Sales) *365

Say for instance, a company A is due to receive Rs. 3 lacs out of a credit sales of Rs. 10 lacs, then days of receivables would be 3/10*365 which is 109.5 days which means it will realize its entire sales in 109.5 days.

Days Receivable Stockedge

 

With stock edge app we don’t have to calculate Days Receivable data on our own. StockEdge gives us Days receivable data of the last five years of any company listed in the stock exchange with a click in seconds. We can look and compare Days Receivable data of any company and filter out stocks accordingly.

Suppose we want to look at the Days Receivable data of Ashok Leyland for last 5 years. In the home page under stocks type Ashok Leyland, click on the fundamentals tab, we will get Ratios tab. Then in the Ratios tab click on Efficiency Ratios, Days receivable data will be seen of Ashok Leyland for 5 years simultaneously.

Bottomline

Days of Receivables are an important parameter which tells us whether the company is able to generate cash in time from its sold goods. This data is easily available under ratios section of each share freely. We also have scans based on Days of Receivables , with the help of these ready-made scans you can with the click of a button filter out good companies.  These scans are part of the premium offerings of StockEdge app.

Click here to know StockEdge membership.

days of receivables
Tags: cyclical stocksDays of ReceivablesDays ReceivableEfficiency Ratiosfinancial strengthStockEdgevaluation analysis
ShareTweetSend
Open A Zero Brokerage Account In Kotak Open A Zero Brokerage Account In Kotak Open A Zero Brokerage Account In Kotak
Previous Post

Earnings per Share

Next Post

Days of Inventory

StockEdge

StockEdge

StockEdge is a self-help Equity and Mutual Fund research tool. It empowers retail investors to identify investment opportunity with all the necessary data and analytics.

Next Post
Asset turnover ratio

Days of Inventory

EBIDTA growth

EBITDA Growth (%)

Asset turnover ratio

Asset turnover ratio

Contact Us
  • Timing (Mon-Sat): 10 am to 7 pm
  • Sales: +919830994463
  • Support: +919830994402
  • Club Support: +916289906895
  • Affiliate: +917003567131
Recent Posts
StockEdge Version Update 11.1 : Ensuring Data Backed Actions
Cover image fora blog on Top 7 features of StockEdge
Top 7 Innovations by StockEdge for Swing Traders and Momentum Investors!
Important Links
  • StockEdge.com
  • StockEdge Premium
  • StockEdge Pro
  • StockEdge Club
  • Compare Plans
An Initiative Of

© 2023 Kredent InfoEdge Pvt Ltd.

Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p

Get StockEdge App

No Result
View All Result
  • Home
  • Article Categories
    • Fundamental Analysis
    • Technical Analysis
    • Market Themes
    • StockEdge Tutorials
    • StockEdge Version Updates
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
  • Visit StockEdge.com

© 2023 Kredent InfoEdge Pvt Ltd.

30% discount on all StockEdge plans