Creditor days is a measure of how long it takes you to pay your suppliers.
How to Calculate Creditor Days on the Balance Sheet
Trade Creditors/Purchases * 365
What Does Creditor Days Show?
The results of working out creditor days can show:
Abnormally high creditor days can indicate cash flow problems within a business
Abnormally low creditor days can show that a business may not be maximising credit terms available to it to better manage their cashflow.