Dividing the average accounts receivables by the annual net revenue and multiplying by 365 days will produce the debtor days ratio. Average accounts receivable, divided by average daily sales = Receivable Days Formula.

What type of a ratio is debtors days?

The debtors days ratio measures how quickly cash is being collected from debtors. The longer it takes for a company to collect, the greater the number of debtors days. Debtor days can also be referred to as Debtor collection period. Another common ratio is the creditors days ratio.

What is the formula of debtor turnover ratio?

Debtor Turnover Ratio = Net Credit Sales / Average Trade Debtors.