article thumbnail

6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

Average Days Delinquent (ADD) ADD is an essential cash flow metric. It offers data on the effectiveness of your collection efforts by measuring the average number of days it takes to collect overdue payments. A high ADD score for a particular client may simply mean financial issues on their end.

article thumbnail

New A/R Collections KPI Dashboard Features January 2023

Gaviti

ADD (Average Days Delinquent) Next, we have the ADD (Average Days Delinquent) metric. This KPI measures the number of days that a payment is overdue, calculated by subtracting the BPDSO (Best Possible Days Sales Outstanding) from the DSO (Days Sales Outstanding).

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

With Gaviti’s A/R invoice-to-cash management solution , customers have successfully reduced their average days delinquent (ADD) by 34%, decreasing their late receivables by 9% year over year (YoY).

article thumbnail

5 Strategies for Cash Flow Optimization in the Transportation and Logistics Industry

Gaviti

With Gaviti’s A/R invoice-to-cash management solution , customers have successfully reduced their average days delinquent (ADD) by 34%, decreasing their late receivables by 9% year over year (YoY).

article thumbnail

Collections Dashboard: Why Is It an Essential Growth Tool?

Gaviti

Average Day Delinquent. The average day delinquent measures how long it takes customers to pay their invoices. This metric measures the percentage of invoices customers pay when the A/R team first attempts to collect payment.

article thumbnail

How Dynamic Cash Flow Planning Can Be a Game Changer for CFOs

Gaviti

Days sales outstanding. Average days delinquent. CFOs should keep an eye on key performance indicators. Here are some of the most important ones to monitor: Collection effectiveness index. Accounts payable aging. Inventory turnover ratios. Current accounts receivable. Current accounts payable. Operating cash flow.

article thumbnail

Gaviti New Features – DSO benchmark, A/R Teams, Partial Payments, Tagging and more.

Gaviti

This KPI is calculated by dividing the current accounts receivable by billed revenue and multiplying that number by the number of days. Next, we’ve added the ADD (Average Days Delinquent) metric to the dashboard.

DSO 52