Answer:
False
The sale-to-cash conversion period is a financial ratio that measures the number of days it takes for a company to convert its sales into cash. It is calculated by dividing the average accounts receivable by the net sales per day. The formula for the sale-to-cash conversion period is:
Sale-to-cash conversion period = (Average accounts receivable / Net sales) x Number of days
So, the statement in the question is incorrect. The sale-to-cash conversion period is calculated by dividing the average accounts receivable by net sales per day, not average revenues.