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collection period

0.04 sec.

Collection period

See: Collection ratio

collection period

The number of days, on average, that a firm requires for collection of a credit sale. The length of the collection period indicates the effectiveness with which a firm's management grants credit and collects from customers. A short period is desirable because the firm obtains cash more quickly for reinvestment or for paying its own bills. The collection period is calculated by dividing accounts receivable by average daily credit sales. Also called average collection period.

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References in periodicals archive

accounts receivable turnover
average collection period
Average collection period, or days' receivables

Days in receivables
Days Sales Outstanding - DSO
Days' sales outstanding

At the end of the collection period, help students create a graph to show the number of cans collected daily over the entire collection period.

Charts, tables, and graphs--made fun! by Rhodes, Mackie / Instructor (1990)

Trees that are put out after this collection period will not be recycled and must be cut into three-foot sections by the customer so that they will fit in the regular trash collection truck.

BRIEFLY TREE RECYCLING SET FOR MONDAY-JAN. 9 by Daily News (Los Angeles, CA)

In all, leaders of Hollywood VOTE said, nearly 40,000 people signed the petition during a six-month collection period that ended last week.

Signature Drive Concludes by Los Angeles Business Journal

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