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Average Collection Period

   Also found in: Acronyms 0.01 sec.
Accounts Receivable Turnover
The average amount of time it takes for a business to collect on its accounts receivable. 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.

average collection period


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A shorter average collection period implies that the hospital receives cash inflows from providing patient care earlier.
Your company's average collection period is calculated by using an Average Collection Period Ratio.
8 Reflects how well inventory is managed Average Collection Period (days) 66.
 
 
 
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