---
title: "Average days delinquent (ADD): definition | Rex glossary"
description: "The average number of days invoices are paid after their due date, calculated as DSO minus best possible DSO."
canonical: https://www.rex.inc/glossary/average-days-delinquent
---

# Average days delinquent (ADD)

The average number of days invoices are paid after their due date, calculated as DSO minus best possible DSO.

ADD separates lateness from terms. A company on Net 60 terms can have a high DSO and a low ADD, meaning customers rarely pay late. A rising ADD means customers are paying later than they agreed to.

Because it strips out the effect of payment terms, it's a useful way to compare collections performance across business units with different customer mixes.

## Further reading

- [DSO vs CEI vs ADD: which AR metric tells the truth→](https://www.rex.inc/resources/ar-metrics/dso-cei-add)

## Related terms

- [Days sales outstanding (DSO) The average number of days it takes to collect payment after a sale, calculated from receivables and credit sales over a period.](https://www.rex.inc/resources/glossary/days-sales-outstanding-dso)
- [Best possible DSO DSO calculated from current receivables only: how fast you'd collect if every customer paid exactly on terms.](https://www.rex.inc/resources/glossary/best-possible-dso)
- [Past due An invoice that hasn't been paid by its due date. It stays past due, and keeps aging, until it's paid, credited or written off.](https://www.rex.inc/glossary/past-due)

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