Debtor Days Calculator

This calculation shows the average number of days it takes a company to receive payment from its debtors, the lower figure the better. A high figure suggests inefficiency or potential bad debts.

Trade Debtors at End of Period
Total Sales for Previous 12 months
     
Average Debt Collection Days =

Cash businesses, such as shops, should have a very low debt collection days figure, as they get their money at the time of sale. Non-cash business have to operate in a credit environment, so whilst the ideal figure would be 30 days it is more likely to be nearer 60 days.



Index of Business Calculators