Average collection period, or days' receivables

Definition:

The ratio of accounts receivables to sales, or the total amount of credit extended per dollar of daily sales (average AR/sales 365).

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

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Property, Plant and Equipment (PP&E)

Tangible, long-lived assets that a company owns and uses in its operations, rather than simply holding them as an investment. This includes buildings, construction, facilities, machinery etc. and is... Read More

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