Debtor Days, sometimes referred to as Days Sales Outstanding, calculates the average number of days a property development business takes to collect outstanding invoices from clients. It is a key cash conversion metric within property development finance UK, providing insight into a developer’s operational efficiency and liquidity. A lower number of debtor days indicates faster cash collection, supporting smoother project funding and overhead management, while higher debtor days can strain working capital. Calculated by dividing trade receivables by total credit sales and multiplying by 365, it is an essential measure for SME UK property developers monitoring cash flow and project financing performance.
This sits beneath Cash Conversion, introducing a more specific variant of the measure without changing its core interpretation. It is commonly considered alongside Billing Timeliness, as both are closely related measures used to assess similar aspects of performance or risk.
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