Final answer:
A days' sales in receivables of 45 means that a firm takes on average 45 days to collect its receivables. It is an indicator of the firm's liquidity in terms of receivable management, rather than profitability or debt levels.
Step-by-step explanation:
When a firm has a days' sales in receivables of 45, it means that, on average, the firm takes 45 days to collect receivables after a sale has been made.
This metric, also known as accounts receivable turnover in days, is a liquidity indicator that shows how effectively a firm is managing its accounts receivable. It is not directly indicative of the firm's profitability or debt level, but it can influence cash flow, and an excessively high number might suggest issues with credit policies or customer payment habits.