The average number of days it takes to collect sales.
Días de cobro = Clientes ÷ Ventas × 365
What each letter means
- Cl: Accounts receivable
- V: Annual sales
An example
With Cl = €60,000, V = €365,000: Collection days = 60 days.
The average number of days it takes to collect sales.
With Cl = €60,000, V = €365,000: Collection days = 60 days.