The Debtor Turnover Days formula calculates the average number of days it takes for a company to collect payments from its debtors (customers who owe money). It is computed as Debtor Turnover Days = (Average Accounts Receivable / Average Daily Credit Sales). This metric provides insight into how quickly a company is able to convert its accounts receivable into cash, facilitating assessments of cash flow management and the effectiveness of credit control measures within the business.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Digital Order-to-Cash: Maximizing the Cash Flow
Finance Transformation: Journey to the New Digital Era
10 Reasons to Embrace Receivables Analytics
Enterprise Digital Assistants: How they can support you in your Credit, Collections and Cash Application Operations
Add AI to Your Order-to-Cash Process
AR Automation for JD EDwards
AR Automation for SAP
AR Automation for Oracle
AR Automation for NetSuite
AR Automation for PeopleSoft
