Average Collection Period Calculator

✖Accounts Receivable is the money owed to a company by providing the services.ⓘ Accounts Receivable [AR]			+10% -10%
✖Sales for Reporting Period determines the sales over a specified period.ⓘ Sales for Reporting Period [S_RP]			+10% -10%
✖Reporting period length is the time covered by a set of financial statements. It is usually represented in days.ⓘ Reporting Period Length [t]			+10% -10%

✖The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable.ⓘ Average Collection Period [ACP]

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Average Collection Period Solution

STEP 0: Pre-Calculation Summary

Formula Used

Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)
ACP = AR/(S_RP/t)
This formula uses 4 Variables

Variables Used

Average Collection Period - The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable.
Accounts Receivable - Accounts Receivable is the money owed to a company by providing the services.
Sales for Reporting Period - Sales for Reporting Period determines the sales over a specified period.
Reporting Period Length - Reporting period length is the time covered by a set of financial statements. It is usually represented in days.

STEP 1: Convert Input(s) to Base Unit

Accounts Receivable: 2000 --> No Conversion Required
Sales for Reporting Period: 458000 --> No Conversion Required
Reporting Period Length: 30 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ACP = AR/(S_RP/t) --> 2000/(458000/30)

Evaluating ... ...

ACP = 0.131004366812227

STEP 3: Convert Result to Output's Unit

0.131004366812227 --> No Conversion Required

FINAL ANSWER

0.131004366812227 ≈ 0.131004 <-- Average Collection Period

(Calculation completed in 00.004 seconds)

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Softusvista Office (Pune), India

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Bhilai Institute of Technology (BIT), Raipur

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Average Collection Period Formula

LaTeX Go

Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)
ACP = AR/(S_RP/t)

How to Calculate Average Collection Period?

Average Collection Period calculator uses Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length) to calculate the Average Collection Period, The Average Collection Period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable. Average Collection Period is denoted by ACP symbol.

How to calculate Average Collection Period using this online calculator? To use this online calculator for Average Collection Period, enter Accounts Receivable (AR), Sales for Reporting Period (S_RP) & Reporting Period Length (t) and hit the calculate button. Here is how the Average Collection Period calculation can be explained with given input values -> 0.131004 = 2000/(458000/30).

FAQ

What is Average Collection Period?

The Average Collection Period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable and is represented as ACP = AR/(S_RP/t) or Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length). Accounts Receivable is the money owed to a company by providing the services, Sales for Reporting Period determines the sales over a specified period & Reporting period length is the time covered by a set of financial statements. It is usually represented in days.

How to calculate Average Collection Period?

The Average Collection Period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable is calculated using Average Collection Period = Accounts Receivable/(Sales for Reporting Period/Reporting Period Length). To calculate Average Collection Period, you need Accounts Receivable (AR), Sales for Reporting Period (S_RP) & Reporting Period Length (t). With our tool, you need to enter the respective value for Accounts Receivable, Sales for Reporting Period & Reporting Period Length and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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