collection period

Collection period

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.

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.
References in periodicals archive ?
8 per cent increase they posted last year because we still have over four more months of collection period for the year, PeEa said.
NO DOUBT in theory it sounds like a good plan, but I'm perturbed by a suggestion that a county council may switch its household refuse bin collection period from two to four weeks.
The data collection period for a chart week begins on Friday, which is the standard chart release day worldwide, as stipulated by the International Federation of the Phonographic Industry (IFPI).
Its average collection period for work has increased from 210 to 259 days, which has led to increased bank borrowing and interest costs.
But Coun Trickett warned this year's half-price offer for gardeners who signed up midway through the collection period would not be repeated next year.
There is a significant relation between average collection period and value of the listed companies in Tehran stock exchange.
The long run survival can only be possible through efficient management of cash conversion cycle including receivable collection period, inventory conversion period and payable deferral period (Weinraub & Visscher, 1998).
During the collection period, beginning today and lasting until January 5, 2014, passengers are able to place cash donations in any currency or denomination, including small value coins, in special envelopes provided in aircraft seat pockets.
The peer leaders raised $2,300 in total during the two-week period collection period.
To qualify, taxpayers must prove that their outstanding tax liabilities exceed the amount of income and assets available to satisfy those liabilities during the time remaining in the collection period, generally, the statute of limitation.
The effect of the length of the data collection period on the kinetic parameter was greater in comparison with the effect on the total signal change and its impact was dependent on the speed of the measured reaction.

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