Collection ratio

Collection ratio

The ratio of a company's accounts receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash.

Days' Sales Outstanding

In accounting, a company's average collection period. Usually calculated monthly, it indexes the relationship between outstanding accounts receivable and total sales over a given period and is a common tool in measuring liquidity. Tracking trends in days' sales outstanding can also indicate the level of credit risk a company is willing to extend at different points of time. It is also called the collection ratio.
References in periodicals archive ?
And, if ECC grants its approval to charge the gas consumers on account of gas losses and theft, unaccounted for Gas-UfG, then collection ratio of both gas utilities - SNGPL and SSGCL will go up as gas consumers of Sui Northern Gas Company Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL) will have to pay UfG of 7.
The company has strong cash-generation ability, evident in its positive cash flow from operations in the past two years (2016: CNY38 billion; 2015: CNY13 billion) and a high cash collection ratio of above 90%.
Increasing the tax collection ratio relative to GDP was foremost in our mind.
Imran Khan criticized the government's economic polices, claiming that in its tenure the country's exports, foreign and local investment, and tax collection ratio had decreased.
The Federal Minister for Finance, Dr Hafeez Shaikh said the tax collection ratio has increased by 21 percent as Rs.
Average Monthly Collection Ratio over Past 3 Months 91.
As indicated by the above revenue mobilization model, tax revenue is a function of two policy choice variables, namely the definition of the tax base and the tax ratio (TR), and three administrative-related variables, specifically the size of the coverage ratio (CVR), the valuation ratio (VR), and the collection ratio (CLR).
Citing low taxation, low revenue collection ratio and the imposition of 63 percent indirect taxes in the GDP, the CPDI executive director termed the government's efforts insufficient, as it had burdened the poor masses more than the privileged and powerful segments of society.
But when calculating collection ratios, keep in mind that the gross collection ratio is easy to figure out but is influenced by the fee discount contracted with payers, and so, it is not a pure measure of collections performance.
The financial services department fixed this by scrapping that measure and implementing two new measures, overdues (dollar target) and collection ratio (dollars collected/total dollars due).
The Company's revenue recognition method for the corresponding third fiscal quarter of prior year ended May 31, 2007 was based on the trailing twelve months average collection ratio.

Full browser ?