How it works
Average trade receivables are divided by credit sales for the same period and scaled by the period day count. This form solves for average trade receivables (same currency); enter the known quantities in Collection days, Period credit sales (same currency), Period length.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Collection days | 30 d | Formula symbol: days. Required unit: d. Must be greater than zero. Allowed range: 0.001–3,650. |
| Period credit sales (same currency) | 1,200,000 | Formula symbol: sales. Enter a numeric value. Must be greater than zero. |
| Period length | 360 d | Formula symbol: period. Required unit: d. Use a whole number. Must be greater than zero. Allowed range: 1–366. |
Worked example
Show example inputs and results
This example is generated by the same calculation engine using the starting values in the form. Your own inputs produce your own result.
- Collection days
- 30 d
- Period credit sales (same currency)
- 1,200,000
- Period length
- 360 d
Complete example results
- Average trade receivables (same currency)
- 100,000
Reading the result
The result solves for average trade receivables (same currency) from the entered quantities. Check the result unit and the formula conditions before using it.
Questions and answers
Can I use the example values for my own calculation?
The example values illustrate the calculation. Replace every input with your own information, especially dates, rates and the selected operation.
When can I use the average trade receivables (same currency) result?
Keep credit-sale scope and day count consistent. This ratio does not determine the due date or delinquency of individual invoices. All monetary inputs must use the same currency; currency conversion, tax and automatic fees are excluded.
Why are some results rounded?
Results display up to 8 decimal places. Calculations use the unrounded values; very small values use scientific notation. JavaScript floating-point arithmetic can introduce tiny rounding differences.
Are my inputs sent to a server?
The calculator processes inputs in your browser. Its code does not send your values to a server.
Method sources: openstax.org