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  • About Us
    • Nick Setchell – RealTime CEO
    • Vistage & TEC WorkshopsNick Setchell has been working with Vistage, the world’s largest CEO organization, since 2001.
    • NewsSee what’s happening with RealTime CEO.
    • Economic Update Report
    • Contact UsReach out to us. If you’re interested in booking Nick to give a keynote address or workshop at your conference, please include the date and location.
  • Concepts
    • Fiscal Focus Financial Statement AnalysisUnlock the hidden numbers in your P&L and balance sheet to see how you’re performing in 11 vital metrics.
    • Should We? / Can We?View, in real time, the actual financial impact of the hundreds of business decisions your team makes every month.
    • 24 Month Rolling ForecastingBlend your trailing twelve months with a rolling 12-month forecast to get a complete financial picture of your business.
    • J Curve ManagementTrack the number of investments you’re undertaking, the 3 phases of each, and the 5 rules for managing them.
    • Return on Operations – ROOView your return on operations percentage — your ROO % — the most powerful number to measure business success.
    • CEO Performance AnalysisBenchmark your performance as a private-company CEO against others in your industry.
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How are Accounts Payable Days calculated?

The Accounts Payable Days are calculated as follows:  RTC compares the Accounts Payable balance in the Balance Sheet for the month, to the Purchases balance in the Income Statement for the month. Purchases are defined as all costs less Wages, Interest, Depreciation and Non-Operational (or any accounts tagged as Materials, Direct Costs Other, and Indirect Costs Other).  If the AP balance is equal to the month’s purchases, it calculates it as 30 days.

The amount of AP over the Purchases balance for that month is then compared to prior months purchases and calculated as a portion of days.

Example:

AP balance as at June $2,000,000
Purchases for June $1,500,000 (30 days)
AP balance remaining $500,000 ($2,000,000-$1,500,000)
Purchases for May $1,600,000 ($500,000/$1,600,000 x 30 days = +9.375 days)

Total AP days are 30 + 9.375 days = 39



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