Trade accounts receivable divided by sales, multiplied by 360 (the lower the ratio, the faster customers pay)
Also known as debtor's turnover ratio. It is expressed as debtors divided by sales. The result is multiplied by number of days in a year. Lower the figure, the better it is as it implies that the company's funds are not locked up for long.
The average time period for which receivables are outstanding. Equal to accounts receivable divided by average daily sales. also called collection ratio.
Indicates the average length of time that the firm must wait after making a sale before it receives payment. The formula is as follows: Accounts receivable Total sales/365 or Accounts receivable Average daily sales
How long the typical customer is taking to pay its bills. It is computed by dividing accounts receivable by daily sales.
The average number of days in which cash receipts will liquidate receivables.
Ratio of accounts receivables to sales.
Average time it takes a company to collect its accounts receivables.
See Summary of financial ratios.
The number of days required, on average, to collect accounts receivable. Français: Période d’encaissement moyenne Español: Período promedio de cobranza
Syn: receivables conversion period.