oboloo Glossary

Average Net Trade Accounts Receivable

oboloo Glossary

Average Net Trade Accounts Receivable

Average Net Trade Accounts Receivable is a financial term used to track the amount of money owed to a business by its customers. It’s an important tool for assessing liquidity and determining cash flow for a business. It’s calculated by adding up all the current receivables – including those from customers who have recently paid their invoices – and dividing them by the total number of outstanding invoices. By keeping track of this metric, businesses can get an idea of how much they are owed by their customers and identify potential areas of risk.