Debtors' Collection Period
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Analysis and Interpretation of Financial Statements for Decision Making
MS: Tempoh Kutipan Penghutang · EN: Debtors' Collection Period · ZH: 应收账款收款期
Meaning
The debtors' collection period shows the average number of days taken to collect debts from debtors. Its formula is (debtors ÷ credit sales) × 365 days. A shorter period indicates efficient debt collection.
Example
Maju Enterprise has debtors of RM20,000 and credit sales of RM146,000. The debtors' collection period is (20,000 ÷ 146,000) × 365 = 50 days to collect the debts.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5