Just enter your Course Name for Assignment and Papers

Wednesday, February 3, 2010

Collection Period to Payment Period Ratio

Collection Period to Payment Period Ratio

Formula to calculate collection period to payment period ratio:

Collection Period to Payment Period = collection period / payment period.



Collection period to payment period ratio explanation and definition:


The collection period to payment period above 1:1 (100%) indicates that suppliers are being paid more rapidly than the company is collecting from their customers.

0 comments:

Post a Comment