The Average Accounts Receivable Formula is a business metric used to measure the average amount of money that customers owe for goods and services purchased on credit. It’s calculated by taking the sum of all accounts receivable and dividing it by the number of customers. The formula helps companies understand their cash flow over time so they can plan accordingly, make sound decisions about operations, and determine the health of their customer relationships. Knowing your Average Accounts Receivable Formula can help you stay on top of your company finances and ensure long-term success.