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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.
Simple Interest. The average collection period formula is the number of days in a period divided by the receivables turnover ratio. The numerator of the average collection period formula shown at the top of the page is 365 days.For many situations, an annual review of the average collection period is considered.However, if the receivables turnover is evaluated for a different time period, then the numerator should reflect this same time period.he numerator of the average collection period formula shown at the top of the page is 365 days. For many situations, an annual review of the average collection period is considered. However, if the receivables turnover is evaluated for a different time period, then the numerator should reflect this same time period.