Our Financial Analysis Success Kit is Ready!
Why you should take a look at the Financial Analysis Success Kit:We've combined all our highly popular financial analysis tools into one mega-financial-analysis-kit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:
The eBook "Learn Ratio Analysis In Minutes"
The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)
A BONUS...Our eBook of "Key Financial Statement Terms"
Another HUGE BONUS...Five-Part Financial Ratio Cheat Sheet Series
Learn more on our product page:Take a Look
An example of Average Collection Period
Here, we will go through an average collection period example, using sample financial statement data, and discuss the results.
Average Collection Period Example
Here are some values for a fictional company TestCorp Inc.
|Accounts Receivables||270133||338594||Net Sales||2269471||2766859|
Here is some more text
|338594 / 365|
|2766859 / 365|
Average Collection Period Analysis of Results
From the above example calculation, it took about 44 days on average for the company to collect its accounts receivable in cash during 2016. While in 2017, it took about 45 days to collect accounts receivables. Since the average collection period has increased from 2016 to 2017, this indicates more operational efficiency in 2016 as it’s taken the company longer to collect on its accounts receivables using its available cash from sales.