Receivables collection period

The receivables collection period insteads the time to regain the receivables. The longer the receivables collection period is, the worse the business has.

The quickest way to compute the receivables collection period is to use the formula:

For example:

Compared with 20X8 the receivables collection period has worsened in 20X9.

Related posts:

1. Accounts receivable collection period
2. Accounts payable payment period
3. Accrued expenses
4. Prepaid expenses
5. Balance sheet analysis