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OPERATING RATIOS - Others

Debt Collection Period


	OPERATING RATIOS - Others
		Total Assets-to-Sales
		Debtors-to-Sales
		Debt Collection Period

Debt Collection Period

Debt Collection Period ratio, is the year's sales which were outstanding at the balance sheet date, expresse in days. A rough measure of the days of credit that a firm's offers to its suppliers/clients. The formula is as follows:

= (average debtors / turnover) * 365