Average Collection Period Calculator

Average Collection Period Calculator

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

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