Average collection period

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  1. Ann Cederholm
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Комментарии
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Your ratio on the left hand side is incorrect. ACP = AR*365/Credit Sales. You forgot to multiply by the number of days in the period.

AdamAdam-vuqt
Автор

why higher the better ?
It should be lesser the better because you are taking less days to convert your receivable to cash which is the ulitimate goal of any company

gagan