HOSTING A TOTAL OF 318 FORMULAS WITH CALCULATORS

## Average Collection Period

The average amount of time it takes for a business to collect on its accounts receivable is called the Average Collection Period. This is calculated by multiplying the amount in accounts receivable by the number of days in a given period and dividing into the total amount of credit sales.

Accounts receivable turnover is a way to determine how a business credit risk compares to that of its competitors.

## $\frac{R}{\frac{S}{365}}$

Here R defines accounts receivables and S defines annual credit sales

ENTER THE VARIABLES TO BE USED IN THE FORMULA

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