The Average Collection Period (ACP) is a financial ratio that calculates the average number of days it takes for a company to collect the money owed to it by its customers (its accounts receivable).

Companies with subscription models remain popular. With a subscription model, companies charge their customers a periodic fee to access a product or service. Subscription businesses provide companies ...

The collection period is the time that it takes for a business to convert balances from accounts receivable back into cash flow. This can apply to an individual transaction or to the business's ...