/* * Copyright (c) 2012, 2013, Credit Suisse (Anatole Tresch), Werner Keil. * * Licensed under the Apache License, Version 2.0 (the "License"); * you may not use this file except in compliance with the License. * You may obtain a copy of the License at * * http://www.apache.org/licenses/LICENSE-2.0 * * Unless required by applicable law or agreed to in writing, software * distributed under the License is distributed on an "AS IS" BASIS, * WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. * See the License for the specific language governing permissions and * limitations under the License. */ package org.javamoney.calc.common; import org.javamoney.calc.CalculationContext; import org.javamoney.calc.ComplexCalculation; import org.javamoney.calc.ComplexType; import org.javamoney.calc.ComplexValue; import org.javamoney.moneta.spi.MoneyUtils; import javax.money.MonetaryAmount; import javax.money.MonetaryQuery; import java.math.BigDecimal; import java.math.MathContext; /** * <p> * <img src="http://www.financeformulas.net/formulaimages/Average%20Collection%20Period%201.gif"/> <br/> * The average collection period formula is the number of days in a period divided by the * receivables turnover ratio. * * The numerator of the average collection period formula shown at the top of the page is 365 days. * For many situations, an annual review of the average collection period is considered. * However, if the receivables turnover is evaluated for a different time period, then the * numerator should reflect this same time period. * * For example, if the receivables turnover for one year is 8, then the average collection * period would be 45.63 days. If the period considered is instead for 180 days with a * receivables turnover of 4.29, then the average collection period would be 41.96 days. * By the nature of the formula, a company will have a lower receivables turnover when a * shorter time period is considered due to having a larger portion of its revenues awaiting * receipt in the short run. * * @see http://www.financeformulas.net/Average-Collection-Period.html * @author Anatole Tresch */ public final class AverageCollectionPeriod implements MonetaryQuery<BigDecimal>{ private static final BigDecimal BD72 = BigDecimal.valueOf(72); private BigDecimal avgAccountsReceivable; private AverageCollectionPeriod(Number avgAccountsReceivable) { this.avgAccountsReceivable = MoneyUtils.getBigDecimal(avgAccountsReceivable); } /** * Get the current average accounts receivable value for this query. * @return the current average accounts receivable value, never null. */ public BigDecimal getAvgAccountsReceivable() { return avgAccountsReceivable; } /** * Calculates the average collection period. * @param receivablesTurnover this equals to {@code salesRevenue / average Accounts receivable}; * @see #receivablesTurnover(MonetaryAmount, Number) * @return the average collection period, never null. */ public static BigDecimal calculate(Number receivablesTurnover) { return new BigDecimal(365, CalculationContext.mathContext()) .divide(MoneyUtils.getBigDecimal(receivablesTurnover), CalculationContext.mathContext()); } /** * Calculates the receivable turnover defined as {@code salesRevenue / average Accounts receivable}; * @param revenue the sales revenues. * @param avgAccountsReceivable the average accounts receivable * @return the receivables turnover, never null. */ public static BigDecimal receivablesTurnover(MonetaryAmount revenue, Number avgAccountsReceivable){ return MoneyUtils.getBigDecimal(avgAccountsReceivable).divide( revenue.getNumber().numberValue(BigDecimal.class), MathContext.DECIMAL64); } /** * Calculates the average collection period, based on the revenue and average accounts receivable. * @param revenue the revenues * @param avgAccountsReceivable the average accounts receivable * @return the average collection period */ public static BigDecimal calculate(MonetaryAmount revenue, Number avgAccountsReceivable){ return new BigDecimal(365, MathContext.DECIMAL32).multiply( receivablesTurnover(revenue, avgAccountsReceivable), MathContext.DECIMAL64); } @Override public BigDecimal queryFrom(MonetaryAmount amount) { return calculate(amount, avgAccountsReceivable); } @Override public String toString() { return "AverageCollectionPeriod{" + "avgAccountsReceivable=" + avgAccountsReceivable + '}'; } }