Average Collection Period in Financial Ratios Formulas

The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable. And is denoted by ACP.

Formulas to find Average Collection Period in Financial Ratios

fxAverage Collection PeriodGo

List of variables in Financial Ratios formulas

fx Accounts Receivable Go

fx Sales for Reporting Period Go

fx Reporting Period Length Go

FAQ

What is the Average Collection Period?

The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable.

Can the Average Collection Period be negative?

{YesorNo}, the Average Collection Period, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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