33 days is the example result. Read it using the units and relationship stated below.
Invoice Aging Weighted Days uses receivables ≤30 days, receivables 31–60 days, receivables 61–90 days.
Keeping timing visible in cash decisions
For invoice aging weighted days, the relationship is Result = (([Receivables ≤30 days] × [Average days bucket 1] + [Receivables 31–60 days] × [Average days bucket 2] + [Receivables 61–90 days] × [Average days bucket 3]) ÷ ([Receivables ≤30 days] + [Receivables 31–60 days] + [Receivables 61–90 days])). The amount depends on the supplied receivables ≤30 days, receivables 31–60 days, rather than a live market price or a value imported from another record. Profit does not state when money reaches the bank. Receivables, supplier payments and inventory can absorb cash while sales remain healthy. A cash comparison needs the payment window and outstanding balance, not only the invoice total.
What the model includes
Result = (([Receivables ≤30 days] × [Average days bucket 1] + [Receivables 31–60 days] × [Average days bucket 2] + [Receivables 61–90 days] × [Average days bucket 3]) ÷ ([Receivables ≤30 days] + [Receivables 31–60 days] + [Receivables 61–90 days])) Record whether amounts include tax, credit notes or disputed balances. Where a model converts annual flows into days, keep the balance and flow definitions consistent. Supplier terms and collection delays may move independently. Use the result to identify the next collection or payment question. A financing decision also needs contractual fees, settlement timing and repayment terms that may sit outside this model.
Example with the supplied inputs
Receivables ≤30 days: 40000; Receivables 31–60 days: 25000; Receivables 61–90 days: 10000; Average days bucket 1: 15; Average days bucket 2: 45; Average days bucket 3: 75. Result: 33 days. The values are illustrative.
Compare one changed input
Receivables ≤30 days changes from 40000 to 44000. The result becomes 32.0886 days. All other inputs remain fixed.
Calculation rule
Result = (([Receivables ≤30 days] × [Average days bucket 1] + [Receivables 31–60 days] × [Average days bucket 2] + [Receivables 61–90 days] × [Average days bucket 3]) ÷ ([Receivables ≤30 days] + [Receivables 31–60 days] + [Receivables 61–90 days]))
Inputs and output
| Input | Example value | Entry convention |
|---|---|---|
| Receivables ≤30 days | 40000 | Use the duration unit stated in receivables ≤30 days. A time period is not interchangeable with a currency amount or a count of events. |
| Receivables 31–60 days | 25000 | Use the duration unit stated in receivables 31–60 days. A time period is not interchangeable with a currency amount or a count of events. |
| Receivables 61–90 days | 10000 | Use the duration unit stated in receivables 61–90 days. A time period is not interchangeable with a currency amount or a count of events. |
| Average days bucket 1 | 15 | Use the duration unit stated in average days bucket 1. A time period is not interchangeable with a currency amount or a count of events. |
| Average days bucket 2 | 45 | Use the duration unit stated in average days bucket 2. A time period is not interchangeable with a currency amount or a count of events. |
| Average days bucket 3 | 75 | Use the duration unit stated in average days bucket 3. A time period is not interchangeable with a currency amount or a count of events. |
Output: 33 days is the example result. Read it using the units and relationship stated below. Unit: days.
How to use the page
Collect the inputs
Gather Receivables ≤30 days, Receivables 31–60 days, Receivables 61–90 days. Use one period and the units shown in the form.
Run the calculation
Enter the values and select the action. The calculation rule above explains how the inputs produce the result.
Compare a scenario
Change Receivables ≤30 days on its own, keeping the other inputs fixed. Read both results before changing another assumption.
Worked example
With the example inputs listed above, the result is 33 days.
Change Receivables ≤30 days from 40000 to 44000 while keeping every other value fixed. The result becomes 32.0886 days. This comparison isolates that input; it does not forecast how other variables will respond.
Check the stated formula, units and limits before using the result in a decision.
Keep the displayed formula, input units and model scope with the result. Corrections or questions can be sent through the request section on this page.
Content updated: October 11, 2026