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Average Collection Period Calculator

Updated: Jun 4, 2018
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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Background Information

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.

Tags

FINANCE   COMPANY  

 

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History

Jun 4, 2018
Tool Launched