Aged receivables analysis
An aged receivables analysis groups customer balances by how long they have been outstanding (e.g. current, 30, 60, 90+ days) to reveal which debts are becoming slow to collect.
See it move
Loading infographic...
Total trade receivables of €80,000 split into ageing bands: €50,000 current, €18,000 at 30 days, €8,000 at 60 days, and €4,000 at 90-plus days overdue. The two oldest bands together, €12,000, are only 15% of the total but carry the greatest collection risk, the starting point for deciding an allowance for doubtful debts.
Where it fits
SubjectFinancial AccountingCoreTopicWorking Capital & Trade AccountsCore
Check yourself
PracticeCORE
An aged receivables analysis shows total receivables of €80,000: current €50,000, 30 days €18,000, 60 days €8,000, and 90-plus days €4,000. How much is more than 60 days overdue (the 60-day band plus the 90-plus band)?
Select an answer to check your understanding.