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 collection days; enter the known quantities in Average trade receivables (same currency), Period credit sales (same currency), Period length.
Inputs and units
| Input | Example value | What to enter |
|---|---|---|
| Average trade receivables (same currency) | 100,000 | Formula symbol: ar. Enter a numeric value. Must be greater than zero. |
| 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.
- Average trade receivables (same currency)
- 100,000
- Period credit sales (same currency)
- 1,200,000
- Period length
- 360 d
Complete example results
- Collection days
- 30 d
Reading the result
The result solves for collection days 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 collection days 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