The higher the number, the longer you pre-finance your people's wages.
Why it matters
You often pay wages before your client pays you. The longer that gap, the more working capital you need. That makes debtor days a key metric for the board, not just for finance.
Where it goes wrong
An average hides outliers: one large client that pays late disappears among the rest. So also look at aged debt, the share older than 60 days, and at payment behaviour per client.
How Dashly calculates it
Dashly calculates debtor days per month from your accounting, with payment behaviour per client next to it. If they are well above the agreed payment term, you get an alert to follow up.