debtors ratio, average collection period


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debtors ratio, average collection period

or

debt

or

days ratio

an accounting measure of a firm's average collection period for DEBTS, which expresses the amount owed by firm's period-end DEBTORS as a ratio of its average daily sales. The resulting figure shows the average period that customers took to pay their debts, expressed in days. See CREDITORS RATIO, CREDIT CONTROL, BAD DEBT, FACTORING.