How fast customers pay you.

AR turnover measures how many times per year a business collects its average receivables. Divide net credit sales by average receivables. Inverse gives Days Sales Outstanding (DSO), the average days to collect from customers. Most B2B sits at 30-60 DSO; slow-paying industries like construction can run 90-120 DSO.

8M credit sales against 1M average AR = turnover 8.0, DSO of 45.6 days. Typical for professional services or B2B sold on net-30 terms with a few late payers. Push average AR to 2M and turnover drops to 4.0 (DSO 91 days) - roughly one month beyond agreed terms, a clear collection problem.

Improving AR turnover directly frees cash. Cutting DSO from 60 days to 45 days on 8M sales releases 329k in cash (15 days × 8M ÷ 365). Tactics: offer 2% discount for 10-day payment, stricter credit terms for new customers, automated reminder sequences, escalation to collections at 60+ days.

Run it with sensible defaults

Using net credit sales of 8,000,000, avg accounts receivable of 1,000,000, the calculation works out to 8.00. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.

The levers in this calculation

The inputs — Net Credit Sales and Avg Accounts Receivable — do not pull with equal force. Not every input has equal weight. Flip one at a time toward extreme values to feel which ones move the needle most for your situation.

How the math works

AR turnover = credit sales ÷ avg receivables. DSO = 365 ÷ turnover. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".

What to do with a low result

A disappointing result is information, not a judgement. Pick the single input that dragged the figure down most and focus the next quarter on that one factor. Breadth-first improvement rarely works; depth-first on the worst input usually does.

What this doesn't capture

The score is a composite of the inputs you provide. Life context — job security, family obligations, health, housing — doesn't appear in the math but shapes the real picture. Use the number as a prompt, not a verdict.