What is Debtor Ageing Analysis?

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Debtor Ageing Analysis is a method used to track and categorize the age of outstanding debts owed to a company.

Debtor Ageing Analysis helps businesses understand the distribution of their outstanding debts by age.
It categorizes debts based on how long they have been outstanding, such as current, 30 days past due, 60 days past due, etc.
This analysis helps businesses identify potential cash flow issues and prioritize collection efforts.
For example, a company may use Debtor Ageing Analysis to see that a significant portion of their debts are 90+ days past due, indicating a need for more aggressive collection actions.