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How do you calculate debtors days in Excel?

Debtor Days = (Receivables / Sales) * 365 Days Debtor Days = (3,000,000 / 20,000,000) * 365. Debtor Days = 54.75 days.

Who is a debtor and who is a creditor?

Quick Answer. The difference between a debtor and a creditor is that the creditor is the one who lends money in a credit relationship, and the debtor is the one who borrows it.

How do you calculate debtors collection?

The debtor collection period ratio is calculated by dividing the amount owed by trade debtors by the annual sales on credit and multiplying by 365.

What is the simple meaning of debtor?

: a person who owes a debt see also bankrupt compare creditor, obligee, obligor.

What is the meaning of debtor days?

In simplest terms, debtor days measure how quickly a business gets paid. Average debtor days, also known as \u201cday's sales in accounts receivable,\u201d are determined by dividing the average number of daily sales by the average number of debtor days.

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