Debtor days
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Hi all
Now iknow i may be being very blonde but i am wondering if someone can help me
Now my boss keeps saying our debtor days is going up i.e its summot like 92 days at the moment and he keeps saying that must be wrong as we have had a lot of cash received in of debtors.
Now i understood debtor days to be aged debt devided by turnover is that correct? :?
Our aged debt has risen by £175k this month compared to last and just wondered if anyone knows a quick formula
many thanks in advance
Kel
Now iknow i may be being very blonde but i am wondering if someone can help me
Now my boss keeps saying our debtor days is going up i.e its summot like 92 days at the moment and he keeps saying that must be wrong as we have had a lot of cash received in of debtors.
Now i understood debtor days to be aged debt devided by turnover is that correct? :?
Our aged debt has risen by £175k this month compared to last and just wondered if anyone knows a quick formula
many thanks in advance
Kel
0
Comments
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Re:Debtor days
Hi
Debtor days is usually
Debtors * 365
Sales
Beware that sales should only be credit sales, and that sales should include VAT, as the debtors figure will.0 -
Re:Debtor days
If you have a mix of cash sales and credit sales the cash sales are turned into cash immediately so take:
trade debtors x 365 days
credit sales turnover
which is the same as lincs has said0