Overview
The Aging Trend KPI tracks the percentage of your accounts receivable (AR) that are over 30 days and over 60 days old, comparing the current month to the previous month. This KPI gives you a quick, high-level snapshot of whether your aged AR is improving or worsening—allowing you to assess the effectiveness of your collection efforts and identify areas that may need further attention.
What This KPI Shows
>30 Days: Represents the percentage of total AR made up of claims aged over 30 days.
>60 Days: Represents the percentage of total AR made up of claims aged over 60 days.
Both percentages are calculated by dividing the total balance of claims over the threshold (30 or 60 days) by your total AR balance.
Note: Negative balances are excluded from these calculations.
How It’s Calculated
Aged AR % = (Balance of claims aged >30 or >60 days) ÷ (Total AR balance)
Monthly Change = Current Month % – Previous Month %
Interpreting the Arrows
Red arrow (▲): Indicates an increase in aged claims—potentially signaling issues or delays in payment that should be reviewed.
Green arrow (▼): Indicates a decrease in aged claims—suggesting progress in your collection efforts.
In the example above:
89% of claims are over 30 days old
69% of claims are over 60 days old
These values are compared to the previous month:
>30 Days increased by 7% (▲ red arrow)
>60 Days decreased by 3% (▼ green arrow)