Average collection period ratio ratio of days to sales outstanding You can calculate your businesss average collection period by dividing your accounts receivable balance by your net credit sales and multiplying that figure by 365. The formula for the average collection period is. 365360 days is considered when you calculate ACP for the whole year.
Average Collection Period No.
Know what data you need. The formula for the average collection period is. In the equation days refers to the number of days in the period being measures. We can apply the values to our variables and calculate the average collection period.