Receivables days outstanding, without dividing by zero (ROUND)
Test case
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○ Ready Enter formula in highlighted cells, then click Submit.
Test case
1
Reset
Submit
A
B
C
D
E
F
G
1
2
3
4
5
6
7
8
9
10
○ Ready Enter formula in highlighted cells, then click Submit.
The problem
Problem statement
Receivables, revenue for the period and the length of the period are in B1:B3. Put the days-sales-outstanding figure in the AR turnover days cell D2, to one decimal.
Receivables ÷ revenue × days — and a zero-revenue period must return 0 rather than #DIV/0!.
Problem data
Show the sheet as a table (selectable, copyable)
| A | B | D | |
|---|---|---|---|
| 1 | Receivables | 120000 | AR turnover days |
| 2 | Revenue | 900000 | |
| 3 | Days in period | 90 |
Notes
DSO answers "how many days of sales are sitting in receivables". The multiplication by days is what turns a ratio into days; forgetting it gives a turnover count, not days. Round to one decimal because finance reports these to a tenth.
How to approach
Your answer goes in D2.
- Target cell is D2
- Receivables / revenue gives the fraction
- Multiply by the days in the period
- Shape: =IFERROR(ROUND(?, ?), ?)
Function guide
FAQ
How do I calculate days sales outstanding?
=receivables / revenue × days in the period. The result is in days; without the day count it is a turnover ratio.
Why divide by zero when revenue is zero?
Because the ratio has no meaning without sales. Return 0 or "n/a" deliberately, and say which in the report.