## < ⎙ 1 Other formulas that you can solve using the same Inputs

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Acid Test Ratio=(Cash+Accounts Receivable+Short Term Investments)/Current Liabilities GO

### Average Collection Period Formula

Average Collection Period =Accounts Receivable/(Sales for Reporting Period/Reporting Period Length)
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## How to Calculate Average Collection Period ?

Average Collection Period calculator uses Average Collection Period =Accounts Receivable/(Sales for Reporting Period/Reporting Period Length) to calculate the Average Collection Period , The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable. Average Collection Period and is denoted by ACP symbol.

How to calculate Average Collection Period using this online calculator? To use this online calculator for Average Collection Period , enter Accounts Receivable (AR), Sales for Reporting Period (S) and Reporting Period Length (t) and hit the calculate button. Here is how the Average Collection Period calculation can be explained with given input values -> 0.131004 = 2000/(458000/30).

### FAQ

What is Average Collection Period ?
The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable and is represented as ACP=AR/(S/t) or Average Collection Period =Accounts Receivable/(Sales for Reporting Period/Reporting Period Length). Accounts Receivable is the money owed to a company by providing the services, Sales for Reporting Period determines the sales over a specified period and Reporting period length is the time covered by a set of financial statements. It is usually represented in days.
How to calculate Average Collection Period ?
The average collection period is the approximate amount of time that it takes for a business to receive payments owed in terms of accounts receivable is calculated using Average Collection Period =Accounts Receivable/(Sales for Reporting Period/Reporting Period Length). To calculate Average Collection Period , you need Accounts Receivable (AR), Sales for Reporting Period (S) and Reporting Period Length (t). With our tool, you need to enter the respective value for Accounts Receivable, Sales for Reporting Period and Reporting Period Length and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well. Let Others Know