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:
- 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 ...
- 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 ...
- 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 ...
- 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 ...
- 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).
- 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.
- 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 ...
- 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 ...