All 21 Aging Analysis questions
More in Aging Analysis
How are aging buckets determined—by invoice date or due date? What does the 90+ days bucket typically signify and how is it treated? How do you read an AR aging summary at a glance? What does it mean when receivables are 'current' versus 'past due'? How is Days Sales Outstanding (DSO) calculated and what does it indicate? What is Days Payable Outstanding (DPO) and how does it relate to aging? What is the cash conversion cycle and how do AR/AP aging feed it? How is aging used to prioritize collections activity? How do you reconcile the aging report to the general ledger control account? What red flags can an aging report reveal?
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Accounts Payable & Receivable › Aging Analysis

What is a weighted-average days overdue and why is it useful?

Beginner

Answer

Weighted-average days overdue weights each overdue balance by its size, giving a single figure that reflects how late money is on a dollar-weighted basis. It's more meaningful than a simple average because a large, slightly-late balance matters more than a tiny, very-late one.
Real-world example A weighted-average of 18 days overdue signals the bulk of late money is only moderately late, guiding a measured response.

Common follow-ups: Why weight by balance size? | How does it differ from a simple average?

Collections & Bad Debts Credit Control Aging Analysis
All 21 Aging Analysis questions