Rytvae Consulting · Think Right · Invest Right
Creditor Days Calculator
Result
Chart
Show formula & working
Payables turnover = Credit purchases ÷ Average payables · Creditor days = 365 ÷ Turnover
Details
How this works
Creditor days show how much supplier credit the business uses. It reduces the working capital the business must fund itself.
Very long creditor days can mean strained liquidity or disputes with suppliers.
Frequently asked questions
Can I use COGS if purchases are not known?
Yes, as an approximation — the Key Ratios calculator does this when purchases are blank.
Do MSME payment rules matter?
Yes. Payments to micro and small suppliers have statutory time limits, which affect how far creditor days can stretch.
Want your ratios read the way a lender reads them?
Classification, quasi-equity and one-off items all move the ratios. Talk to Rytvae before you approach lenders.