Adjusted Trade Creditor Period (days)

Adjusted Trade Creditor Period (days)

Trade creditors x 365

Turnover x 75

 

Benchmark: 35-40 days

The average number of days credit given by suppliers (adjusted).

Here, turnover is grossed down to represent sales at cost prices i.e. an assumed 25% margin is deducted. This enables sales and trade credit to be compared on a like-for-like basis.