Average Collection Period Formula and Calculator. The average collection period formula is the number of days in a period divided by the receivables turnover ratio. The numerator of the average collection period formula shown at the top of the page is 3. For many situations, an. However, if the receivables turnover is evaluated for a. Mario Kart 64 Rom Pc. For example, if the receivables turnover for one year is 8, then the average collection period would be 4. If the. period considered is instead for 1. By the nature of the formula, a company will have a lower receivables turnover when a shorter time period is. How is the Average Collection Period Formula Derived In order to understand the concept of the average collection period formula, one must first look at the accounts. The average collection period formula can be rewritten as the numerator, 3. This would result in the formula. Net Collection Calculator' title='Net Collection Calculator' />The 2nd portion of this formula is essentially the of sales that is awaiting payment. The of sales awaiting payment is. From here, the of time awaiting payment is converted into. It is important to consider that a company that has seasonal sales will affect the outcome when using this formula. Leksikon Sarajeva more. For. example, a company that sales mostly at the beginning of the period may show none or very little payments awaiting receipt. Matlab Toolbox Symbolic Motors. Also, a company who sales mostly towards the end of the period may show a very high amount of receivables. Alterations of the. Online homework and grading tools for instructors and students that reinforce student learning through practice and instant feedback. Net Collection Calculator' title='Net Collection Calculator' />Are you thinking about paying off your debts Especially credit card debts You might need this debt reduction calculator to help you managing the payment.