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. In this video learn 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.