Which category is days sales in receivable?

The days sales in accounts receivable ratio (or the collection period ratio) falls under the category of liquidity ratiOS. It measures the number of days that net receivables are outstanding, and is calculated by:

(365 days × Average Net Receivables) / Net Credit Sales

Days Sales in Receivables measures how long it takes for the average debtor to settle his/her account; the smaller the ratio, the faster it takes and the better it is for the company.