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

Distribution policies and fiscal, Distribution Policies ...

Distribution Policies Most Recent Fiscal Year Fiscal Year (-1) Fiscal Year (-2) Fiscal Year (-3)

Discuss capital budgeting techniques, Discuss capital budgeting technique...

Discuss capital budgeting techniques including : the Payback Rule, IRR, NPV, and the Profitability Index. Be sure to discuss the advantages and disadvantages of each one. Di

Disadvantages of floatation of new shares, Disadvantages of Floatation of N...

Disadvantages of Floatation of New Shares 1. The cost of getting a quotation is high, mainly when a new issue of shares is completed and the company is small. It means that su

Replacement of old school buses , Identify one each (1) benefit, (2) disbe...

Identify one each (1) benefit, (2) disbenefit, and (3) monetary cost that would impact each of the following projects: a.A new electrical distribution station in a developing pa

Find the new cost of equity , Y ou are interested in the value of Joes Shoe...

Y ou are interested in the value of Joes Shoe Corporation and its cost of capital. Suppose you believe that the assumptions of Miller-Modigliani's Proposition 1 (without taxes) are

Find out operating leverage, (i) Find out operating leverage from the follo...

(i) Find out operating leverage from the following data: Sales Rs.50000 Variable Cost 60% Fixed Cost Rs.12000

Stewardship accounting, Stewardship Accounting Shareholders contribute...

Stewardship Accounting Shareholders contribute capital that is provided to the directors that they employ and at the end of each accounting year render an explanation on the a

The importance of tax, Discuss business taxes and their importance in finan...

Discuss business taxes and their importance in financial decisions

Joint stock companies - types of business organisations, Joint Stock Compan...

Joint Stock Companies - Types of Business Organisations Initiators contribute to the capital support of those companies via the purchase of shares of those companies. These co

Journal entry.., Financial statement

Financial statement

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages