Percent current
The share of total receivables that isn't yet past due, a simple and widely used measure of the health of an AR portfolio.
Percent current is current receivables divided by total receivables. It's easy to read off an aging report and moves quickly when customers start paying late.
On its own it can mislead: a surge of new invoices makes it look better without anything improving, so it's best read alongside DSO and ADD.
Related terms
- AR aging reportThe report that lists each customer's open balance by age: current, then 1–30, 31–60, 61–90 and more than 90 days past due.
- Average days delinquent (ADD)The average number of days invoices are paid after their due date, calculated as DSO minus best possible DSO.
- 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.