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Debtor Days Formula

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Debtor Days indicates the average time it takes for a company to convert its accounts receivable into cash. Check FAQs

DD = (\frac{AR}{CS}) \cdot 365

DD - Debtor Days?AR - Accounts Receivable?CS - Credit Sales?

Debtor Days Example

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Here is how the Debtor Days equation looks like with Values.

Here is how the Debtor Days equation looks like with Units.

Here is how the Debtor Days equation looks like.

677.8571 = (\frac{65000}{35000}) \cdot 365

677.8571 = (\frac{65000}{35000}) \cdot 365

677.8571 = (\frac{65000}{35000}) \cdot 365

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Debtor Days Solution

Follow our step by step solution on how to calculate Debtor Days?

FIRST Step Consider the formula

DD = (\frac{AR}{CS}) \cdot 365

Next Step Substitute values of Variables

∴

DD = (\frac{65000}{35000}) \cdot 365

Next Step Prepare to Evaluate

∴

DD = (\frac{65000}{35000}) \cdot 365

Next Step Evaluate

∴

DD = 677.857142857143

LAST Step Rounding Answer

∴

DD = 677.8571

Debtor Days Formula Elements

Variables

Debtor Days

Debtor Days indicates the average time it takes for a company to convert its accounts receivable into cash.

Symbol: DD

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Debtor Days

Accounts Receivable

Accounts Receivable is the total amount of money owed to the company by its customers for goods or services that have been sold on credit.

Symbol: AR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Accounts Receivable

Credit Sales

Credit Sales is the total amount of revenue generated from sales made on credit during a specific period.

Symbol: CS

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Credit Sales

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How to Evaluate Debtor Days?

Debtor Days evaluator uses Debtor Days = (Accounts Receivable/Credit Sales)*365 to evaluate the Debtor Days, The Debtor Days is a financial metric that measures the average number of days it takes for a company to collect payment from its customers for credit sales. Debtor Days is denoted by DD symbol.

How to evaluate Debtor Days using this online evaluator? To use this online evaluator for Debtor Days, enter Accounts Receivable (AR) & Credit Sales (CS) and hit the calculate button.

FAQs on Debtor Days

What is the formula to find Debtor Days?

The formula of Debtor Days is expressed as Debtor Days = (Accounts Receivable/Credit Sales)*365. Here is an example- 677.8571 = (65000/35000)*365.

How to calculate Debtor Days?

With Accounts Receivable (AR) & Credit Sales (CS) we can find Debtor Days using the formula - Debtor Days = (Accounts Receivable/Credit Sales)*365.

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Debtor Days Formula

Debtor Days Example

Debtor Days Solution

Debtor Days Formula Elements

Other formulas in Debt Management category

How to Evaluate Debtor Days?

FAQs on Debtor Days

Variable Name