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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.
Calculating the Average Collection Period. The standard formula for calculating average collection period is the number of working days divided by the debtor receivables turnover ratio. For an annual average collection period, the number of working days is set to 365.