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8.6 Average Collection Period Ratio Analysis Template

What is the Average Collections Period Ratio Template and why it is useful in a business plan for a Plumbing and Heating Contractor?

The average collections period ratio template give a small business owner like Felix Gonzalez the ability to present in numerical and graphical format the number of days it takes for a small business like Central Plumbing & Heating Inc. to collect its receivables. The lower the ratio in days, the better for the firm and the higher the ratio in days, the worse its implications.

What calculations go into the Average Collections Period Ratio Template?

The only calculations that a small business owner like Felix Gonzalez has to input into the template for average collections period are the daily sales and the accounts receivables for the three years for which the financial projections are being made in the business plan. The daily sales number is arrived at by taking the annual sales and dividing that by 365. Once the data is inputted, you can click on the output tab from where the output can be copied and pasted into the business plan.

Quick Links:

  1. Go to the Corresponding Questionnaire section for this industry.
  2. Go to the Corresponding Business Plan section for this industry.

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The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!



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