CREDITOR DAYS Definition

Bookmark and Share

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.

Learn new Accounting Terms

ACCOUNTS PAYABLE TO SALES measures the speed with which a company pays vendors relative to sales. Numbers higher than typical industry ratios suggest that the company is using suppliers assets (cash owed) to fund operations.

CLEARING BANK is a member bank of a national check clearing system.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.