On-time Receipts Ratio measures the amounts collected on or before the payment terms expired as a percentage of total receipts.
|On-time Receipts Ratio|
|| × 100 %
- Received On-time = Total amounts collected on or before contractual payment terms expired
- Receipts = Total amounts collected in the reported period
Unit of measure: %
On-time collections is desired from an Asset Efficiency perspective as it frees-up cash.
Community Importance Rating
|AE11||Days Receivables Outstanding||2||AE11|
|AE111||On-time Receipts Ratio||3||AE111|