a great number of guests ask me on what the meaning of average collection period is.
The meaning of average collection period is the approximate amount of time that it takes for a business to receive payments owed, in terms of receiveables, from its customers and clients.
Calculated as:
Where:
Days = Total amount of days in period
AR = Average amount of accounts receivables
Credit Sales = Total amount of net credit sales during period
For example, suppose that a widget making company, XYZ Corp, has total credit sales of $100,000 during a year (assume 365 days) and has an average amount of accounts receivables is $50,000. Its average collection period is 182.5 days.
Due to the size of transactions, most businesses allow customers to purchase goods or services via credit, but one of the problems with extending credit is not knowing when the customer will make cash payments. Therefore, possessing a lower average collection period is seen as optimal, because this means that it does not take a company very long to turn its receivables into cash. Ultimately, every business needs cash to pay off its own expenses (such as operating and administrative expenses).
Forex Trading Signals » talk about the best forex strategy
elucidating retail foreign exchange company evaluation, rating and comparison datas
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Posted 4 months ago #
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when learning the present forex balance, you'd better pay particular attention to trade related reasoning like the effect of the market's changes on the GBP in Jamaica, and concentrate on primary sector industry related news, for instance the fact that the oil prices are about to to uprise and cause the GBP rates to climb.
Posted 4 months ago # -
i understand the surmise that the GBP-JMD is assumed to freeze for a while was a by-product of the fact that the office equipment market are probably going to to steep and cause changes in the GBP-JMD rates a process would be behind the GBP's solidification.
Posted 4 months ago #
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