Customer credit days

Searching KPI

: Dr. Andrea Lupini; KPI; LIQUIDITY RATIOS; 13 January 2020

This indicator measures the number of days granted to customers by the company in average. Such a timing is the number of days the company turns its credits into positive cash flow.

In other words, how log it takes to the company to transform current assets into liquidity ?

This value is also called "duration of credits" and it is used to address a deep liquidity analysis over the company's monetary cycle (cash flow cycle).

It is an indicator useful for cash flow analysis along with certain financial ratios. This importance is empowered into the XBRL data analytics engine that democratyze the analysis of cash flow for monitoring financial risks on to chain it vertically to each stakeholders.

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