Debtor Days Diagnostic and Calculator

FreeAbout three minutesCash and working capital
What it does

Calculates how long your cash takes to arrive after you invoice, and compares it to the terms you offer and your ProfitPulse indicative benchmark range.

How it helps

Slow payment is your money funding someone else's business. This converts the gap into the dollars sitting in your debtor book, so you can see what tighter collections would actually release.

How this benchmark is calculated

This is an indicative benchmark built from ProfitPulse's internal commercial ranges, not a published market average. Treat it as a commercial signpost, not a formal industry survey and not financial advice. We move the range to suit your broad industry, your business size and how commercially complex it is.

In about three minutes, free, you will see their days sales outstanding, the gap against the terms they offer and their ProfitPulse indicative benchmark range, converted into the dollars waiting in debtors.

Debtor Days Diagnostic

Answer a few quick questions to see where you stand.

How the debtor days is calculated

The formula

Debtor days = accounts receivable divided by sales on invoice terms, times 365.

Worked example

A business with 1,460,000 dollars of sales on terms and 200,000 dollars in receivables has debtor days of about 50, compared to the terms it offers and a band for its industry.

How to read your result

Strong means invoices turn into cash close to your terms. Worth a closer look means cash arrives later than it should. Significant opportunity means meaningful cash is waiting in your debtor book, and it is among the fastest gains available.

What each figure means

  • Accounts receivable balance today: Unpaid customer invoices currently owing to you.

Common questions

What sales do I use?

Only sales on invoice terms. Cash sales settle immediately, so they are excluded to keep the figure honest.

Is this the same as overdue debt?

No. It measures how long all invoices take to convert to cash, not just the late ones.

How quickly can debtor days improve?

Often within one or two quarters, because collection habits respond faster than most owners expect.

How ProfitPulse can help

If cash arrives too slowly, our fractional CFO support resets terms, credit policy and the collection rhythm so payment behaviour changes for good.