Accounts payable turnover ratio, Finance Basics

Assignment Help:

Accounts Payable Turnover Ratio

Ratio for Account Payable Turnover is as Follow:

Creditors/accounts payable turnover = Annual credit purchases /Average creditors

The firm buy goods on credit from suppliers.
The ratio signify number of times p.a. the firm bought goods upon credit after paying the suppliers.
If the creditors turnover is high, this signifies such the payment was made
Contained via a short period of time.

Related Discussions:- Accounts payable turnover ratio

Capital asset pricing model (capm), Capital Asset Pricing Model (CAPM) ...

Capital Asset Pricing Model (CAPM) CAPM is a methods that is used to establish the required rate of return of an investment provided a particular level of risk. According to

Interest rate levels and stock prices, Interest Rate Levels and Stock Price...

Interest Rate Levels and Stock Prices Interest rates contain two effects on corporate profits: a) Since interest rate is a cost, and like the higher the rate of interest the

Importance of working capital management, Importance of Working Capital Man...

Importance of Working Capital Management The finance manager must understand the management of working capital since of the following purpose: a) Time devoted to working c

Head office and branch or subsidiary, Head Office and Branch or Subsidiary ...

Head Office and Branch or Subsidiary MNC has diverse operations set up in dissimilar geographical locations. The HQ acts like the principal and the subsidiary like an agent he

Work, A bond that has $1000 face value and a contract interest rate of 11.4...

A bond that has $1000 face value and a contract interest rate of 11.4%. The bonds have a current value of $1124 and will mature in 10 years. The firms marginal tax rate is 34%. The

Investment bank, Investment Bank A lending entity is engaged in all the...

Investment Bank A lending entity is engaged in all the phases of privacy offerings the including managing, underwriting, trading, and the distributing new security issues.

Bird-in-hand theory, Bird-in-hand Theory Advanced via John Leitner in ...

Bird-in-hand Theory Advanced via John Leitner in year 1962 and furthered with Myron Gordon in year 1963. Argues such shareholders are risk averse and prefer specific. Dividend

CASE STUDY, TRADE FINANCE AND RISK

TRADE FINANCE AND RISK

New divisor, Able, Baker and Charlie are the only three stocks in an index....

Able, Baker and Charlie are the only three stocks in an index. The stocks will sell for $93.$312 and $78 respectively. If Baker undergoes a 2-for-1 stock split, what is the new div

Money, how can I get?

how can I get?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages