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

Calculate the value of the company with borrowing, Suppose the ABC Corporat...

Suppose the ABC Corporation is currently all-equity financed and would like to increase its value by issuing debt. The firm has annual earnings before interest and taxes of $7,0

Illustrate the advantages of underwriting, Illustrate the Advantages of Und...

Illustrate the Advantages of Underwriting Underwriting presumes great significance as it offers the below benefits to the issuing company: (i) Issuing company is relied f

Example of conversion ratio and conversion price, Example of Conversion Rat...

Example of Conversion Ratio and Conversion Price ABC Company Ltd books as: 10.000, Sh.20 ordinary share capital 10,000, Shs.10 8% preference share c

Dow Theory, Dow theory elliot wave theory

Dow theory elliot wave theory

Shareholders - measuring business performance, Shareholders - Measuring Bus...

Shareholders - Measuring Business Performance Shareholders Actual owners are interested in the company's both short and long term survival. For this cause they will need

Advances, advances from foreigners

advances from foreigners

Earning method - bases of valuation, Earning method - Bases of Valuatio...

Earning method - Bases of Valuation The business is valued according to the net stream of income it is expected to create over its lifetime. Determination of maintaina

Determinants of working capital needs, Determinants of Working Capital Need...

Determinants of Working Capital Needs There are few factors that determine the firm's working capital needs. These factors are comprehensively enclosed with a Textbook of Busi

High potential venture, High Potential Venture An organization begins w...

High Potential Venture An organization begins with the intent of growing quickly to annual sales of at least $30 to 50 million in 5 years. It also has the potential to have a f

Suggestion regarding credit limit, Suggestion Regarding Credit Limit. Shoul...

Suggestion Regarding Credit Limit. Should It Be Approved Or Not, W, Finance

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