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Average Days Delinquent

Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts.

What is Average Days Delinquent (ADD)?

Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts. When a business’s ADD is high, its customers take more time to pay their debts – so it may have room to improve in this department. On the other hand, a low ADD implies a company’s debt collection efforts are going smoothly.

Businesses can use this formula to calculate their ADD:

‍ADD = days sales outstanding (DSO) - best possible DSO

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Average Days Delinquent

What is Average Days Delinquent (ADD)?

Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts. When a business’s ADD is high, its customers take more time to pay their debts – so it may have room to improve in this department. On the other hand, a low ADD implies a company’s debt collection efforts are going smoothly.

Businesses can use this formula to calculate their ADD:

‍ADD = days sales outstanding (DSO) - best possible DSO

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30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 
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