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Average Days Delinquent Formula

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Average Days Delinquent helps to measure the average number of days that outstanding invoices or payments are overdue beyond their due dates. Check FAQs

ADD = DSO - BPDSO

ADD - Average Days Delinquent?DSO - Days Sales Outstanding?BPDSO - Best Possible Days Sales Outstanding?

Average Days Delinquent Example

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Here is how the Average Days Delinquent equation looks like with Values.

Here is how the Average Days Delinquent equation looks like with Units.

Here is how the Average Days Delinquent equation looks like.

4 = 7 - 3

4 = 7 - 3

4 = 7 - 3

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Average Days Delinquent Solution

Follow our step by step solution on how to calculate Average Days Delinquent?

FIRST Step Consider the formula

ADD = DSO - BPDSO

Next Step Substitute values of Variables

∴

ADD = 7 - 3

Next Step Prepare to Evaluate

∴

ADD = 7 - 3

LAST Step Evaluate

∴

ADD = 4

Average Days Delinquent Formula Elements

Variables

Average Days Delinquent

Average Days Delinquent helps to measure the average number of days that outstanding invoices or payments are overdue beyond their due dates.

Symbol: ADD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Average Days Delinquent

Days Sales Outstanding

Days Sales Outstanding is a financial metric used to measure the average number of days it takes for a company to collect payment from its customers after a sale is made.

Symbol: DSO

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Days Sales Outstanding

Best Possible Days Sales Outstanding

Best Possible Days Sales Outstanding is the ideal number of days a firm takes to collect payment from customers after the sale, assuming perfect efficiency in accounts receivable management.

Symbol: BPDSO

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Best Possible Days Sales Outstanding

Other formulas in Cost Accounting category

Go Material Cost Variance

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Go Material Price Variance

MPRV = ACQ \cdot (STP - ACP)

Go Material Quantity

MQ = STP \cdot (SQ - ACQ)

Go Revised Standard Quantity

RSTQ = (\frac{SQM}{TSQ}) \cdot TAQ

How to Evaluate Average Days Delinquent?

Average Days Delinquent evaluator uses Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding to evaluate the Average Days Delinquent, Average Days Delinquent indicates an average number of days, past their due dates invoices remain unpaid. Average Days Delinquent is denoted by ADD symbol.

How to evaluate Average Days Delinquent using this online evaluator? To use this online evaluator for Average Days Delinquent, enter Days Sales Outstanding (DSO) & Best Possible Days Sales Outstanding (BPDSO) and hit the calculate button.

FAQs on Average Days Delinquent

What is the formula to find Average Days Delinquent?

The formula of Average Days Delinquent is expressed as Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding. Here is an example- 4 = 7-3.

How to calculate Average Days Delinquent?

With Days Sales Outstanding (DSO) & Best Possible Days Sales Outstanding (BPDSO) we can find Average Days Delinquent using the formula - Average Days Delinquent = Days Sales Outstanding-Best Possible Days Sales Outstanding.

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Average Days Delinquent Formula

Average Days Delinquent Example

Average Days Delinquent Solution

Average Days Delinquent Formula Elements

Other formulas in Cost Accounting category

How to Evaluate Average Days Delinquent?

FAQs on Average Days Delinquent

Variable Name