Creditor days - A ratio used to work out how many days on average it takes a company to pay its creditors. Calculated by dividing the trade creditors shown in its accounts by its sales, and then multiplying by 365.E.g. A company with creditors of £900,000 and sales of £12m, takes an average 27.37 days to pay its bills.Within reason, the higher the number the better, although if a company is very slow in paying its creditors (say 100 days plus) it is worth asking if this is because it has problems generating enough cash quickly enough to pay them.
Creditor days : a ratio used to work out how many days on average it takes a company to pay its creditors. calculated by dividing the trade creditors shown in its accounts by its sales, and then multiplying by 365.e.g. a company with creditors of £900,000 and sales of £12m, takes an average 27.37 days to pay its bills.within reason, the higher the number the better, although if a company is very slow in paying its creditors (say 100 days plus) it is worth asking if this is because it has problems generating enough cash quickly enough to pay them.
Creditor days