All 21 Aging Analysis questions
More in Aging Analysis
What is an aging report (aged trial balance)? What is the difference between AR aging and AP aging? How are aging buckets determined—by invoice date or due date? What does the 90+ days bucket typically signify and how is it treated? What does it mean when receivables are 'current' versus 'past due'? What is a weighted-average days overdue and why is it useful? 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?
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Accounts Payable & Receivable › Aging Analysis

How do you read an AR aging summary at a glance?

Beginner

Answer

Scan the total outstanding, then the distribution across buckets: a high proportion in current is healthy; growing later buckets signal collection problems. Compare customers to spot concentration, and watch the 90+ column for bad-debt risk. Trends over months matter more than a single snapshot.
Real-world example A manager sees 70% current and a small, stable 90+ bucket and concludes collections are under control.

Common follow-ups: What proportion in 'current' is healthy? | Why watch trends over snapshots?

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