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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 average collection period ratio is also known as the days sales outstanding ratio. Answer: The average collection period is the number of days, on average, that it takes a company to collect its credit accounts or its accounts receivables.In other words, this financial ratio is the average number of days required to convert receivables into cash.he average collection period is the number of days, on average, that it takes a company to collect its credit accounts or its accounts receivables.