Debtor Days: How to Calculate Debtor Days Ratio

A Debtor Day ratio calculation can help you better understand how long on average it takes to collect your outstanding debtors. Rob Warlow from Business Loan Services shows how to calculate this ratio and how you can use it to highlight shortcomings in your debtor collection processes.

This ratio is also used by banks when analysing your Financial Statements so calculating this ratio before you meet the bank can help you be better prepared prior to your meeting.

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  1. […] are other videos in this series on calculating ratios: Debtor Days Ratio Creditor Days Ratio Stock Turnover Ratio Gross Profit […]

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