Average Collection Period Calculator

This page holds the online finance calculator to calculate the average collection period. It is the measure of the average number of days that a company requires to collect all its accounts receivables. If the average collection period is small, it indicates that the company has the ability to collect its accounts receivables quickly. Enter the accounts receivables turnover ratio in this average collection period calculator to calculate the resultant value.

This page holds the online finance calculator to calculate the average collection period. It is the measure of the average number of days that a company requires to collect all its accounts receivables. If the average collection period is small, it indicates that the company has the ability to collect its accounts receivables quickly. Enter the accounts receivables turnover ratio in this average collection period calculator to calculate the resultant value.

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Formula:

Average Collection Period (ACP) = 365 / Receivables Turnover Ratio

Example:

Calculate average collection period for a company which has a receivables turnover ratio of 5.

Solution:

ACP = 365 / 5
= 73

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