Average Collection Period Calculator is a tool to determine the amount of time a business takes to receive payments
- Average Collection Period:
- 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.
- Average Collection Period = No. of days × Average net receivables / Net credit sales
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.
- Jun 4, 2018
- Tool Launched