Average Collection Period
ACP ( or DSO) = Accounts Receivable
Annual Gross Revenue/365
• Measures how quickly revenue is turning into cash • Expressed in terms of days (metric is also called Days Sales Outstanding (DSO) • Using trailing 12 months revenue keeps number current
Fast Growth Firm Median
Very High Profit Firm Median
2018 2019 2020 2021 2022
Survey Median
81
91
83
77
70
70
71
81
THE PRINCIPALS ACADEMY 2022
129
Made with FlippingBook Annual report