CREDITOR DAYS Definition

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CREDITOR DAYS is the number of days it takes the company to pay trade creditors. This ratio provides an indication of the amount of credit given to the business by its suppliers. The formula is trade creditors divided by sales multiplied by 365 days.

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PAYMENT DUE DATE is the date on which a payment is due and payable.

SOLVENCY is a companys long-term ability to meet all financial obligations.

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