The Accounts Receivable Collection Period measures the average amount of time it takes for a company to collect payments from its credit customers. This is a crucial metric for analyzing a company's efficiency in managing its receivables and cash flow.
Days' Sales in Receivables is a financial metric that indicates the average number of days it takes a company to collect payment after a sale has been made. This ratio helps businesses understand the efficiency of their credit and collection processes.
The receivables turnover ratio measures how efficiently a company collects its average accounts receivable over a specific period. It indicates the number of times average accounts receivable are collected in a year.
