Weighted Average Terms vs. Weighted Average Days to Pay

Given today's cloudy economic picture, you can't afford not to have the clarity that comes from knowing your numbers. But what should you measure? REL Consulting, a division of The Hackett Group, recommends many metrics when working with its AR clients. One metric uses weighted average terms (WAT) versus weighted average days to pay (WADTP) to gauge AR's performance. REL claims the calculation is a better measurement than DSO because it is not influenced by sales or terms. It reflects an…