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

Financial markets-securities and financial intermediaries, Describe the str...

Describe the structure of financial systems with financial markets, securities and financial intermediaries. By a structural point of view a financial system can be considered

Financial analysis, Financial analysis: Financial analysis (also defin...

Financial analysis: Financial analysis (also defined to as financial statement analysis or accounting analysis or Analysis of finance) defines to an assessment of the viabilit

Calculate the market price of share corporate tax rate, The Balance Sheet o...

The Balance Sheet of International Trade Ltd. as on 31/3/2008 is as under:- Liabilities Amount Assets

Comprehensive income, the objectives ?

the objectives ?

Determine what is the current market price of the bond, 1. A company is tr...

1. A company is trying to decide which one of two projects it should accept. Both projects have similar start-up costs. Project 1 will generate annual cash flows of $52,000 a year

Advantages of stock repurchase, Advantages of Stock Repurchase 1. It m...

Advantages of Stock Repurchase 1. It may be seen as a true signal since repurchase may be motivated with management belief that firm's shares are undervalued. It is true in in

Calculate the profit and segment of the organization, Food and Beverages ...

Food and Beverages Rooms, Restaurants and Other Services Other Income Total $ $ $ Sale

Example of market model, Example of Market Model Illustration: For ...

Example of Market Model Illustration: For the past five (5) years, the MPS and DPS for XYZ Ltd were follows as: 1998 Shs. 1999 Shs.

Calculate average price-earnings ratio, Regan Inc., was founded nine years ...

Regan Inc., was founded nine years ago by brother and sister Carrington and Genevieve Regan. The company manufactures and installs commercial heating, ventilation, and cooling (HVA

Effective reach and effective frequency-insurance , Before purchasing insur...

Before purchasing insurance we have to go through different factors. Among different important factors there are two most crucial aspects we should consider before buying insurance

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages