Receivables collection period
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Receivables collection period is the average length of time required to convert a firm's receivables into cash. It is calculated by dividing accounts receivable by sales per day.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Receivables collection period. The average length of time required to convert a firm's receivables into cash. It is calculated by dividing accounts receivable by sales per day.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
