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Receivables Turnover Screener
Stocks ranked by receivables turnover — revenue divided by accounts receivable — with days sales outstanding (DSO) alongside, so you can quickly spot the companies that collect cash fastest. Pair it with the Asset Turnover Screener and Inventory Turnover Screener to see operating efficiency from every angle.
What Receivables Turnover Reveals
Receivables turnover measures how efficiently a company collects on the credit it extends to customers. When a business makes a sale on terms — "pay us in 30 days" — that unpaid invoice sits on the balance sheet as accounts receivable. Turnover tells you how many times a year the company converts those receivables into cash. A high ratio means money comes in quickly and little capital is tied up waiting to be collected; a low ratio means the company is effectively financing its customers, with cash locked in unpaid invoices.
The flip side of the same coin is days sales outstanding (DSO), which expresses collection speed in days rather than as a multiple. DSO = 365 ÷ receivables turnover. A company turning receivables 12 times a year has a DSO of about 30 days; one turning them 4 times a year sits around 91 days. DSO is often the more intuitive number because it maps directly onto the payment terms you already understand.
Reading the Collection Tiers
The Strong tier (>8x, DSO under 45 days) typically captures retailers, restaurants, and consumer businesses where customers pay on the spot by card, plus disciplined operators who keep tight terms. Typical (4–8x, 45–90 days) covers most B2B companies running standard net-30 to net-60 terms — technology, healthcare, and diversified industrials. Weak (<4x, DSO over 90 days) flags companies whose cash is slow to arrive: long-cycle project businesses, firms with concentrated or troubled customers, or operations where collection discipline has slipped.
As with every efficiency ratio, compare within a sector. A defense contractor with multi-year milestone billing will naturally show a lower turnover than a grocery chain, and neither number means much in isolation. A rising DSO relative to a company's own history is often the more important signal — it can be an early warning that customers are struggling to pay or that revenue is being pulled forward with looser terms.
Receivables Turnover and Cash Conversion
Receivables turnover is one leg of the cash conversion cycle, alongside inventory turnover and payables. Together they determine how long a dollar is trapped in operations before it returns as cash. A company that collects fast (high receivables turnover), sells inventory fast (high inventory turnover), and pays suppliers on reasonable terms can fund growth from its own operations rather than from debt or equity. That is why efficient collectors — even in unglamorous industries — often compound value quietly. Use this screener to find them, then confirm the trend is holding rather than deteriorating.
Frequently asked questions
How is receivables turnover calculated here?
Receivables turnover = revenue ÷ accounts receivable, using trailing revenue and the most recent balance sheet receivables. Some analysts use average receivables — (beginning + ending) ÷ 2 — to smooth out seasonality. This screener uses the latest balance sheet figure for timeliness and consistency across names. DSO is then computed as 365 ÷ receivables turnover.
Should I look at turnover or DSO?
They carry the same information in different units, so use whichever is more intuitive for you. Turnover (a multiple) is convenient for ranking — higher is better. DSO (in days) is easier to sanity-check against a company's stated payment terms — a business that sells on net-30 terms should show a DSO in the 30–45 day range once you account for slow payers. Watching DSO trend over time is often more revealing than any single reading.
Can receivables turnover be too high?
Occasionally. An unusually high ratio can mean a company is offering aggressive early-payment discounts that eat into margin, or that it is factoring (selling) its receivables to pull cash forward — which flatters the ratio without reflecting underlying collection. It can also simply reflect a cash-heavy business like a retailer. As always, read the ratio in the context of the business model and check the margin and cash flow statements alongside it.
How do I use this screener to find ideas?
Filter to your target sector, then sort by receivables turnover descending (or DSO ascending). Names at the top are collecting fastest relative to peers — a marker of operational discipline and pricing power. Then flip it: low-turnover names in a normally fast-collecting sector are candidates for deeper work. Is a key customer in trouble? Are terms loosening to prop up sales? The screener raises the question; the follow-up is yours.