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Q. > Please Help: Debtor turnover ratio
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543 views • Question added Feb 24, 2014 • Accounts • By Mridula , CA , jalandhar


how we can calculate dr turnover ratio on monthly basis

3 Answers

answered Feb 27, 2014 by Krishna Chandra Santi , Chennai

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.


answered Feb 28, 2014 by AKHIL MAHESHWARI , Bhilwara

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.


answered Feb 28, 2014 by AKHIL MAHESHWARI , Bhilwara

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


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jimit

28-Feb-2014 , 05:45:23 pm

credit sales/Drs + BR (For that month)

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