Measures the percentage of receivables that are overdue and unpaid.

What it Measures ?

What % of customers haven’t paid on time?

Relevant StakeHolders 

AR Team, Finance Head

In-depth Use Case / Real-world Example

Overdue Receivables Percentage is calculated by dividing the value of overdue receivables by the total accounts receivable. For instance, if a company has ₹1,000,000 in receivables, and ₹200,000 is overdue, the overdue receivables percentage is 20%. High overdue receivables can indicate inefficiencies in the collections process, potentially impacting cash flow and liquidity. Managing this metric helps in improving collection strategies and reducing financial risks.