Average Collection Period Calculator

Calculate average collection period and accounts receivable metrics

✓ Cash flow analysis ✓ AR turnover ✓ Financial metrics

Calculator

Method 1: Using Accounts Receivable

Method 2: Using AR Turnover Ratio

Additional Information (Optional)

About This Calculator

Calculate how long it takes to collect accounts receivable

Formulas:

ACP = (Avg AR ÷ Credit Sales) × Days
ACP = Days ÷ AR Turnover

Industry Benchmarks

Retail 5-15 days
Manufacturing 30-60 days
Services 30-45 days
Construction 60-90 days

Interpretation

Lower ACP: Faster cash collection
Higher ACP: Slower cash collection
Trend Analysis: Compare over time
Industry Comparison: Benchmark against peers
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How to Use

  1. Enter your average accounts receivable balance
  2. Input your annual credit sales amount
  3. Alternatively, use the AR turnover ratio method
  4. Optionally provide beginning and ending AR balances
  5. Select your analysis period
  6. Click calculate to see results

Why It Matters

Cash Flow Management

Understand how quickly you convert sales to cash.

Credit Policy

Evaluate the effectiveness of your credit terms.

Working Capital

Optimize working capital and liquidity management.