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The Average Collection Period measures the average number of days it takes for the company to collect revenue from its credit sales.The Average Daily Sales is the Net Sales divided by 365 days in the year.he Average Collection Period measures the average number of days it takes for the company to collect revenue from its credit sales.
The moving averages used in the diagram start with the 50-day moving average and increase by 10-day periods up to the final average of 200. (50, 60, 70, 80 ... 190, 200) BREAKING DOWN 'Moving Average Ribbon' Responsiveness to changing conditions is accounted for by changing the number of time periods used in the moving averages. The shorter the number of periods used to create the average, the more sensitive the ribbon is to slight price changes. For example, a series of 5, 15, 25, 35 and 45-day moving averages will be a better choice to find short-term reversals then 150, 160, 170, 180-day moving averages.