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 ...

The accounts receivables ... over a certain period (usually a year). This ratio helps companies monitor cash flow by quantifying the effectiveness of their payment collection efforts.

One of these indicators is inventory-receivables turnover, which is also used to calculate a company's collection period. Money owed to a business is sometimes referred to as "accounts receivable." ...