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Debtor days formula also known as days sales outstanding (DSO), is a crucial financial metric used by businesses to measure. Managing debtor days efficiently is critical for maintaining healthy cash flow and financial stability. In this article, we will dive into the concept of debtor days, its formula, calculation methods, and the importance of managing it effectively. What is the Debtor Days Formula? The debtor days formula is used to calculate the average time it takes for a business to collect payment from its customers. The result is expressed in days and can provide valuable insights into how efficiently a…