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The (Average) Collection Period ratio is included in the following highlighted FINANCIAL STATEMENT RATIO SPREADSHEETS


RA -  8 Basic

RA - 15

RA - 25

RA - 35

RA - 50 Professional

RA - 70 Small Business

RA - 75 Expert

RA - 100 Genius

RA - 125 Wizard

RA - 150 Extreme


See list of other ratio calculation formulas, definitions and explanations!

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average collection period


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average collection period

Collection Period (or Average Collection Period) Ratio
average collection period calculate

Formula to calculate (average) collection period:

Collection Period = Accounts Receivable X 365 days

                                                      Credit Sales


Collection Period =                        365 days

                                     Accounts Receivable Turnover Ratio


The average collection period calculation uses the average accounts receivable over the sales period.

(Average) Collection Period definition and explanation:


The collection period or average collection period must be compared to competitors to see whether the credit given, and customer risk, is in line with the industry.


A high collection period shows a high cost in extending credit to customers.


See Accounts Receivable Turnover formula 

The collection period is included in the financial statement ratio analysis spreadsheets highlighted in the left column, which provide formulas, definitions, calculation, charts and explanations of each ratio. 

The average collection period is included in the book "Financial Statement Analysis including over 200 ratios" available for $35 (freight included). Download for $7. Spreadsheet calculators also available.

The average collection period is listed in our efficiency ratios.

The average collection period and other ratios are key to understanding financial statements. Our ratio calculation spreadsheets reduce time and effort in calculating decision making ratios. They reduce risk for lenders and investors and enable owners, managers and consultants to increase productivity and business profits. These spreadsheets are bargain priced to provide a huge return on investment. Click here for more details.

Spreadsheets to calculate ratios (includes formulas, definitions, explanations and charts):

See list of ratios , or the financial statement ratio analysis spreadsheets which are not highlighted in the left column, to see which other ratios our spreadsheets define, calculate and explain. 

The average collection period is included in our new spreadsheet which calculates 15 key business ratios, only $30 USD.

The collection period or average collection period ratio may be included in our custom 1, 3 or 5 period financial statement ratio analysis spreadsheet.

Click here to order excel accounting spreadsheet to calculate 15 ratios  with formulas, definitions, calculations, charts, and explanations for each ratio. (Includes Average Collection Period).

Order free 3 ratio calculator spreadsheet. Current, quick and debt-to-equity ratios with formulas, calculations, charts and explanations. Email us at

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