Collection period is simply a shorter, informal way of referring to the average collection period, the measure of how long it typically takes a company to collect cash after making a sale on credit. Both terms describe the exact same calculation and the same underlying question about how quickly receivables actually turn into cash.
Why the shorter name is used
In everyday business conversation, treasury discussions, and financial analysis, the word “average” is frequently dropped simply for brevity, since the measure is inherently an average by its nature anyway, calculated from total credit sales and receivables over a period rather than from any single transaction. Dropping the word changes nothing about how the figure is calculated or interpreted.
Where to go for the full explanation
See Average Collection Period for a complete explanation of how the measure is calculated from the accounts receivable turnover ratio, how it is compared against a company's stated credit terms, and why lenders and investors track it closely as an early indicator of receivables quality.