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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

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Instruções do exercício

  • Create the variables for the ending debtors balance debtors_end, and the total sales for the year sales_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(____))
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