Average Collection Period Calculator
Parameter | Description | Example Value |
---|---|---|
Accounts Receivable | The total amount of receivables. | $50,000 |
Net Credit Sales | The total credit sales made during the period. | $300,000 |
Days in Period | The total number of days in the period. | 365 days |
Average Collection Period | The average number of days it takes to collect receivables ((Accounts Receivable / Net Credit Sales) * Days in Period). | 61 days |