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Late Receipts Ratio Days Receivables Outstanding 51120 3 {{{keywords}}} {{{description}}}
AE112
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Latest revision as of 14:48, 10 June 2017
The Late Receipts Ratio measures the amounts collected after the contractual payment terms expired as a percentage of total revenue.
Calculation
| Late Receipts Ratio | ||||
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where:
- Late Receipts = Total amounts collected after contractual payment terms expired
- Receipts = Total amounts collected in the reported period
Unit of measure: %
Importance
Late collections increase the amounts reported in Accounts Receivables, lock-up cash and may result in increased costs to the company to collect the funds.
Community Importance Rating: