{"id":3334,"date":"2025-05-12T09:58:54","date_gmt":"2025-05-12T07:58:54","guid":{"rendered":"https:\/\/pro-visions.anvetogroup.com\/days-of-collection\/"},"modified":"2025-07-15T15:26:41","modified_gmt":"2025-07-15T13:26:41","slug":"days-of-collection","status":"publish","type":"page","link":"https:\/\/pro-visions.eu\/en\/days-of-collection\/","title":{"rendered":"Days of Collection"},"content":{"rendered":"
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  • Days of Collection = (Trade Receivables \/ Turnover) * 365<\/li>\n\n\n\n
  • Days of Collection = ((Trade Receivables \u2013 Bad Debts)\/ (Turnover \u2013 Bad Debts of the Cycle) * 365<\/li>\n\n\n\n
  • It shows the average number of days it takes to collect the company’s receivables.<\/li>\n\n\n\n
  • This indicator shows whether a company’s receivables are too large compared to its sales. The time it takes to collect receivables is proportional to the speed of collection of receivables.<\/li>\n\n\n\n
  • A high speed in collecting receivables means a lower probability of losses from bad customers.<\/li>\n\n\n\n
  • It expresses, in other words, the time the company must wait for cash to flow into its coffers after making a sale.<\/li>\n\n\n\n
  • Caution: For the days of the indicator to be real, and not just as a measure of comparison, it is necessary<\/li>\n<\/ul>\n\n
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    1. to subtract bad debts from both parts of the fraction<\/li>\n\n\n\n
    2. Add VAT to turnover<\/li>\n<\/ol>\n\n

      Business actions to improve the Index<\/strong><\/p>\n\n

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      • Increasing <\/strong>Turnover with Low or Zero Credit Turnover<\/li>\n\n\n\n
      • Reduce<\/strong> Total Trade Receivables through early collection, even with a relative decrease in profitability an acceptable discount of Turnover is one that results in a reduction in Turnover less than the corresponding cost of borrowed funds<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"

        Business actions to improve the Index<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"inline_featured_image":false,"footnotes":""},"class_list":["post-3334","page","type-page","status-publish"],"_links":{"self":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3334","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/comments?post=3334"}],"version-history":[{"count":2,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3334\/revisions"}],"predecessor-version":[{"id":3336,"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/pages\/3334\/revisions\/3336"}],"wp:attachment":[{"href":"https:\/\/pro-visions.eu\/en\/wp-json\/wp\/v2\/media?parent=3334"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}