Financial Statement Analysis
Read a receivables ageing schedule
What you will learn
Identify whether cash collection risk is concentrated in overdue invoices.
Overdue share = overdue receivables ÷ total trade receivables
Age each invoice by days past its contractual due date using the same cut-off. Compare buckets and customer concentrations across periods. Separate genuine disputes, credit notes and recent collections from delayed payment. Use the ageing to guide questions on cash forecasts and provisioning. A fictional Surat exporter has ₹50 lakh receivables, with ₹10 lakh over 60 days past due. The older overdue bucket is 20% of total.
A fictional Surat exporter has ₹50 lakh receivables, with ₹10 lakh over 60 days past due. The older overdue bucket is 20% of total.
Age each invoice by days past its contractual due date using the same cut-off. Compare buckets and customer concentrations across periods. Separate genuine disputes, credit notes and recent collections from delayed payment. Use the ageing to guide questions on cash forecasts and provisioning. A fictional Surat exporter has ₹50 lakh receivables, with ₹10 lakh over 60 days past due. The older overdue bucket is 20% of total.
What should determine days past due?