Debtor days ratio
The first ratio we will look at is debtor days. This ratio looks at how many days it takes to receive our money from our debtors. It is usually calculated over a period of 1 financial year.
The ratio is as follows:
\(Debtor\,Days = \frac{Ending\,Balance\,Debtors}{Sales} \times Days\,in\,Financial\,Year\)
The following information is available to you:
- Sales for the year: 12,500 USD
- Ending Debtors balance: 650
Este exercício faz parte do curso
Financial Forecasting in Python
Instruções do exercício
- Create the variables for the ending debtors balance
debtors_end
, and the total sales for the yearsales_tot
. - Calculate the debtor days ratio
ddays_ratio
. - Print the result.
Exercício interativo prático
Experimente este exercício completando este código de exemplo.
# Create the variables
____ = ____
____ = ____
# Calculate the debtor days variable
____ = (____/____) * 365
# Print the result
print("The debtor days ratio is {}.".format(____))