Average collection period ratio, Financial Management

Assignment Help:

What is Average Collection Period Ratio? Please provide me report on Average Collection Period Ratio.

Related Discussions:- Average collection period ratio

Capital structure, Modi Wires and Cable Ltd intends to finance its INR 20 m...

Modi Wires and Cable Ltd intends to finance its INR 20 million modernization plan for which it is trying to decide between debt and external equity. The management feels that the e

Lien, A legal claim on exact assets which were used to make loan secure.

A legal claim on exact assets which were used to make loan secure.

What is over capitalization, Accounting and Financial Management 1. Wha...

Accounting and Financial Management 1. What is over capitalization? How do we know over capitalization has occurred? 2. Explain permanent and temporary working capital. 3

Debt ratio, Calculate the sustainable growth rate

Calculate the sustainable growth rate

Operating cycle, Uses of operating cycle in business

Uses of operating cycle in business

Stock valuation, I just purchased a stock that would pay the dividends of t...

I just purchased a stock that would pay the dividends of the first four years as D1 = $0.65, D2 = $0.74, D3 = $0.79, D4 = $0.84. I also told that the dividends would grow continual

Bond indexation, Bond indexation serves the purpose of replicating th...

Bond indexation serves the purpose of replicating the performance of a predetermined benchmark as closely as possible. These benchmarks are generally very broader

Book value and liquidation value per share for common stock, Compare and co...

Compare and contrast the book value and liquidation value per share for common stock. Is one method more reliable? Explain. The Book Value of a firm's common stock is institute

Financial system, Financial System: The economic development of a natio...

Financial System: The economic development of a nation is reflected by the progress of the various economic units, broadly classified into corporate sector, government and hous

Need for assessing the risks , Define risk. Examine the need for assessing ...

Define risk. Examine the need for assessing the risks in a project

Alice 2/14/2013 3:05:33 AM Definition of ''Average Collection Period'' The estimated amount of time that it takes for a business to receive payments owed, in terms of receivables, from its clients and customers. Calculated as: Average Collection Period = *Days AR / Credit Sales** Where: Days stands for Total amount of days in period AR stands for Average amount of accounts receivables Credit Sales stands for Total amount of net credit sales during period

Alice

2/14/2013 3:05:33 AM

Definition of ''Average Collection Period''

The estimated amount of time that it takes for a business to receive payments owed, in terms of receivables, from its clients and customers.

Calculated as:
Average Collection Period = Days * AR / Credit Sales

Where:

Days stands for Total amount of days in period
AR stands for Average amount of accounts receivables
Credit Sales stands for Total amount of net credit sales during period

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages