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Creditor days |
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Creditor daysA 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.Similar MatchesCreditors committeeCreditors committeeA group representing firms that have claims on a company facing bankruptcy or extreme financial difficulty. Secured creditorSecured creditorA creditor who has a charge over the assets of a debtor in the event of the debtor failing to meet his/her obligations. CreditorsCreditorsPeople or companies who are owed money by debtors. CreditorCreditorLender of money. CreditorCreditorAn individual or institution to whom a debt is owed. Further SuggestionsBest interests of creditors testCreditor nation |
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