Exchange Currency

average settlement period

The average time taken for a business to pay its creditors, or the average time for debtors to pay what is owed to the business. Calculation of average settlement periods can help a business evaluate the likely amount of time that a customer will take to fulfill an outstanding debt, which can have an effect on cash flows of the business.

Related information about average settlement period:
  1. What is average settlement period? - BusinessDictionary.com
    Definition of average settlement period: The average time it takes either for a business to pay its creditors or for debtors to pay what they owe.Average settlement ...
     
  2. What is average settlement period? - InvestorWords.com
    Definition of average settlement period: The average time taken for a business to pay its creditors, or the average time for debtors to pay what is owed to the ...
     
  3. AVERAGE SETTLEMENT PERIOD DEFINITION
    AVERAGE SETTLEMENT PERIOD is calculated: For Debtors = Trade Debtors X 365 days / Credit Sales For Creditors = Trade Creditors X 365 days / Credit ...
     
  4. What is AVERAGE SETTLEMENT PERIOD? - The Law Dictionary
    Definition of AVERAGE SETTLEMENT PERIOD: The time a company takes to pay creditors. This term also applies to debtors. The sales, days, and creditors are ...
     
  5. What is Average settlement period for trade receivable
    In: Business & Finance [Edit categories]. Answer: Average settlement period for trade receivables = Average inventory held divided by cost of sales (times 365).
     
  6. Average Settlement Period - Shareworld
    The time that a company takes to make payments to its creditors or for their debtors to pay what is owed is what is referred to as the average settlement period.
     
  7. Financial Statement Analysis - Computer Science: Source
    Jan 7, 2010 ... Businesses prefer this to be short. Average settlement period for trade receivables: (Trade receivables ÷ Credit sales) x 365. How long it takes ...
     
  8. Residential Real Estate Agents - Buying Information
    The average settlement period is forty-two (42) days, but this is open to negotiation. It might suit both parties to agree a delayed settlement, for example, to allow ...