Average Collection Period from Receivables Turnover Ratio

Formula

Average Collection Period = 365 ÷ Trade Receivables Turnover Ratio

Worked example

A trade receivables turnover ratio of 8 times gives an average collection period of about 45.63 days.

The interactive calculator on this page accepts your own question values and displays the final answer with step-by-step working.

Frequently asked questions

What formula does the Average Collection Period Calculator use?

This calculator uses: Average Collection Period = 365 ÷ Trade Receivables Turnover Ratio. The interactive page shows the working step by step.

Is the Average Collection Period Calculator free?

Yes. It is free to use and does not require a login.

Can I use the calculator for exam preparation?

Yes. Use it to check numerical working and then practise writing the formula, substitution and final answer yourself.

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