Average Collection Period Calculator is a tool to determine the amount of time a business takes to receive payments
- Average Collection Period:
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- What does Average Collection Period mean?
- The average collection period or ACP represents an average number of days between the date a credit sale is made and the date payment is received from the credit sale.
- Formula
- Average Collection Period = No. of days × Average net receivables / Net credit sales
- Example
For example, if the person’s turnover for one year is 8, the average collection period would be 45.63 days. If the period considered is instead for 180 days with a person turnover of 4.29.
According to the formula:-
- Average collection period would be 41.96 days.
History
- Jun 4, 2018
- Tool Launched
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