What is the meaning of Collection ratio?

Collection ratio is the ratio of a company's accounts receivable to its average daily sales, which gives the average number of days it takes the company to convert receivables into cash.

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APABarry Goldsmith. (2010). Collection ratio. Retrieved September 24, 2026, from http://smartdefine.org/collection_ratio/definitions/1150179
ChicagoBarry Goldsmith. 2010. "Collection ratio" http://smartdefine.org/collection_ratio/definitions/1150179 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, Collection ratio, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/collection_ratio/definitions/1150179>.
MLABarry Goldsmith. "Collection ratio" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/collection_ratio/definitions/1150179>