We would use the following average collection period formula to calculate the period: ($10,000 ÷ $100,000) × 365 = Average Collection Period The average collection period, therefore, would be 36 ...

Therefore, using a standard average collection period formula, Salesforce, which sells B-to-B, had an average collection period of just under 50 days. The 50-days were calculated as $4,632 ...