The average debtors collection period formula calculates the average number of days it takes for a company to collect payments from its debtors. It is determined by dividing accounts receivable by total credit sales and then multiplying by the number of days in the period. This metric helps assess the efficiency of a company’s credit and collection policies.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
