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Collection Period Calculation

Calculate the average time from invoice to collection.

Average collection period

15,0gün

Sonuçlar genel bilgilendirme amaçlıdır; kurumunuzun gerçek verileri ve koşullarıyla değerlendirilmelidir.

Scientific and theoretical basis

Collection period is the average time from the issuance of the invoice to the receipt of payment.

Formula and logic

Average Collection Period = Total Collection Period / Number of Invoices

How is it interpreted?

A long period negatively affects cash flow and working capital; it should be monitored on a payer basis.

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Collection Period Calculation | Formula and Interpretation | hbys.pro