Case information: Cyber Systems Pty Ltd is a provider of web and mobile based search and booking platforms. Travel agencies throughout Australia engage Cyber Systems to design and maintain their travel search and booking platforms. As a company specialising in the design and setup of search and booking platforms, Cyber Systems is able to provide clients with better quality platforms, more efficiently than they could otherwise do through employing their own staff.

The COVID-19 pandemic has hit travel agencies particularly hard, with international travel largely coming to a halt and a substantial decline in domestic travel. For Cyber Systems, this has meant that clients have cut back requesting new platform designs and reduced system maintenance requests as much as possible. Many clients are experiencing great financial difficulty and have delayed paying amounts owed to Cyber Systems.

Identify and describe two ways to analyse Cyber Systems financial performance concerning bad debts using relevant analysis and/or ratios. (4 marks)

Structure your answer as follows for each way to analyse the financial performance: (a) Identify way to analyse........... (b) Description of analysis..........