Daily Tips

How To Calculate Debtors Turnover Ratio In Days. The number of days debtors took to make the payment is computed by multiplying the fraction of accounts receivables to net credit sales with 365 days. Accounts receivable turnover in year 1 was 28,5 days.

Accounts Receivable Turnover Ratio - Formula, Examples
Accounts Receivable Turnover Ratio - Formula, Examples from corporatefinanceinstitute.com

This puts the figure into a daily context, as follows: The equation to calculate debtor days is as follows: Percentage of net sales to receivables = (net sales x 100) / (average receivables or average trade debtors) percentage of receivables to net sales = (average receivables or average trade debtors) /.

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