31 December 2012
One company is reliance and other is abc co. Avg Collctn Period (acp) of reliance 50 days and 30 days of abc co.? So which you prefer and why?
01 January 2013
In general better the ACP the better it is because your working capital is rolling quicker i.e., it is not blocked in debtors. However you should make note that it is not so because your credit terms are strict which can adversely affect your sales. Hence, you should see it in combination with the affect on sales.
CAclubindia
