Debtor & Creditor Days Calculation

Hi,all.

As someone relatively new to corporate banking, and with no accountancy qualification experience, how do I calculate Debtor and Credit Days for say month 1, month 2, month 3 etc. of a company's financial year? Obviously over a 12 month period this seems straight forward - e.g. Debtor Days / Sales x 365, but what calculation should I input to Excel for other periods. Taking 25% for 3 months seems too simple, and I wonder if I should be looking at a TTM period for more accuracy? Any guidance would be much apprectiated.

Comments
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Think what you are saying

petersaxton |
petersaxton's picture

Hi, Peter.

Steven1970 |

You are always looking at 12 months

petersaxton |
petersaxton's picture

Thanks, Peter.

Steven1970 |

Steven

petersaxton |
petersaxton's picture

Not always the case

zarathustra |
zarathustra's picture

Hi, Zara.

Steven1970 |

clarification

zarathustra |
zarathustra's picture

My view

petersaxton |
petersaxton's picture

Highly seasonal businesses

petersaxton |
petersaxton's picture

Consistency

tom123 |

Peter, Zara, Tom  -  many

Steven1970 |

Steven

Richard Willis |
Richard Willis's picture

Thanks, Richard.

Steven1970 |