The formula below is also referred to as the days sales in receivable ratio. Average Collection Period = 365 Days / Receivables Turnover Ratio The average receivables turnover is the average ...

There are several types of indicators that are ... a company with an inventory-receivables turnover ratio of 10 would have an average collection period of 365 divided by 10, or approximately ...

and they can look for trends both good and bad when comparing this ratio over different time periods. Lastly, one other liquidity data point of note for retailers is the average collection period ...

Types of Industries and Accounts Receivable Management All companies would like to have a reduced average collection period on their receivables. Not every company interacts with credit sales and ...