## Average settlement period for trade receivables中文

Accounts Receivable Turnover (Days) (Average Collection Period) – an activity ratio measuring how many days per year averagely needed by a company to collect its receivables. In other words, this indicator measures the efficiency of the firm's collaboration with clients, and it shows how long on average the company's clients pay their bills. Average Settlement period for Trade Receivables. Average trade receivables / credit sales revenue x 365. Average Settlement period for Trade Payables. Average trade payables / credit purchases x 365. Sales Revenue to Capital Employed. What is the average collection period? Definition of Average Collection Period. The average collection period is the average number of days between 1) the dates that credit sales were made, and 2) the dates that the money was received/collected from the customers. The average collection period is also referred to as the days' sales in accounts receivable.

### Average payment period (APP) is a solvency ratio that measures the average number of days it takes a business to pay its vendors for purchases made on credit. Average payment period is the average amount of time it takes a company to pay off credit accounts payable.

27 Jun 2019 The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and  Closing trade receivables are normally used in the calculation as it is usually not possible to derive an average trade receivables figure on consistent basis. This  The average collection period for notes and accounts receivable was the same [.. .] as transaction with non-related parties. english.taiwanmobile.com. english. The average collection period formula is the number of days in a period divided by collection period formula, one must first look at the accounts receivables  6 Apr 2018 For example, if a company has average trade receivables of \$5,000,000 and its Debtor days is also known as the debtor collection period.