accounts payable turnover

Accounts payable turnover is a ratio that measures the speed with which a company pays its suppliers. If the turnover ratio declines from one. Accounts payable turnover is the ratio of net credit purchases of a business to its average accounts payable during the period. It measures short term liquidity of. The accounts payable turnover analysis indicates how many times a company pays off its suppliers during an accounting period. For instance, car dealerships and music stores often pay for their inventory with floor plan financing from their vendors. Calculate accounts payable turnover by dividing total purchases made from extra star slot by the average accounts payable amount during the same period. Support Help Center Knowledge Base Community API Docs. Proudly designed and built in Canada, eh. Want to learn more? But if you signed up extra ReadyRatios features will be available. Thus, ABC's accounts payable turned over 8. accounts payable turnover

Accounts payable turnover - das

Accounts payable turnover ratio is calculated by taking the total purchases made from suppliers, or cost of sales, and dividing it by the average accounts payable amount during the same period. A change in the turnover ratio can also indicate altered payment terms with suppliers, though this rarely has more than a slight impact on the turnover ratio. How it works Example: Most Popular Calculators Amortization Schedule Calculator: Calculate its accounts payable ratio.