Accounts Receivable Aging
It’s a listing of all the company’s customers, how much they owe, and how long ago they were invoiced.
Usually, it’s a columned sheet that has customer invoices grouped for less than 30 days outstanding, 31-60 days outstanding, etc. It’s a quick look at how well customers are paying. Are there a lot of very overdue invoices? Then the company has a crappy credit policy, or is poor at collections, or their customers are falling on hard times...none of which is a good sign.
Saw It, Inc. makes chainsaws. The company sees receivables aging for its top customer, Tree Cutz, LLC, go from 37 days to 54 days. Tree Cutz was hit with a lawsuit over a tree that crushed a car, and is running low on cash. The faster Saw It can collect its money from customers like Tree Cutz, the more efficiently it can use its capital, such as investing in making a new, patented, autonomous chainsaw. Time is money in this case, so keeping customer invoices from “aging” is a must.
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Finance: What is Account Receivable Turn...20 Views
finance a la shmoop. what does per-capita mean? well there's poor capita yeah this
guy, how would you like to be named capita and then there's per capita which [man sits under a tree]
just means well technically per head. yep comes from Latin like oh so many
things salsa dressing and dancing among others, the word decapitation comes to [dancing feet]
mind. like what happens when those flying human taxi drones get too far to the
left or when King Henry got tired of a wife. so if that happened often it had [helicopter prop]
throw off the per capita calculations. and same deal if we suddenly had a lot
of two-headed people being born like the aliens in men in black and whole bunch
other Hollywood movies. per capita is a useful metric in a bunch of financial
calculations. a common set is GDP or gross domestic product per capita .like
if you have a ton of GDP say ten trillion dollars from your country [100 dollar bill]
whateverstan, if you only have a million people that's a ton of production
productivity. but if you're say China with well over a billion people well
then it's a much lower GDP per capita. the calculations get quoted when talking
about things like cell phone monthly subscriptions, computer ownership or [people crowd around a cell phone]
particularly rollicking house parties. so yeah the notion of per capita is pretty
important but don't stress if you're not an expert yet. it's a nothing to lose
your head over. [man carries head]
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