Please Help: Debtor turnover ratio

Posted Date : 24-Feb-2014 , 11:41:49 am | Posted By Mridula

how we can calculate dr turnover ratio on monthly basis

Category : Accounts | Answers : 3 | Comments : 1 | Hits : 344

Answers

Answer By: Krishna Chandra Santi

If your debtor collection or credit sales are not consistent throughout the year then monthly DTR will vary. Otherwise calculation can be done by taking proportionate values.

Answer By: AKHIL MAHESHWARI

Dear Mridula, debtors turnover ratio on monthly basis can be calculated by same formula with monthwise figures.
Formula is- DTR=net credit sale of the month/ average debtors of that month.

Answer By: AKHIL MAHESHWARI

Where average debtors of the month can be calculated as- (opening debtors+closing debtors)/2.