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

Comparison between modern and traditional methods, Comparison between Moder...

Comparison between Modern and Traditional Methods Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose

Calculate the current stock price, The Bim-Bom Company is expected to pay a...

The Bim-Bom Company is expected to pay a dividend of $3.10 per share at the end of the year, and that dividend is expected to grow at a constant rate of 4.00% per annum. The compa

Contribution margin , Contribution Margin The Average of the indu...

Contribution Margin The Average of the industry Contribution Margin (CM) was 15.40% for 2004, 14.39% for 2005, and 13.18% for 2006. The chart showed that Contribution Mar

What does beta measure and how is it interpreted, The Beta of several indus...

The Beta of several industry sectors is shown below. Industry Beta (β) Banks

Conservative approach - financing current assets, Conservative Approach - F...

Conservative Approach - Financing Current Assets An exact similar of asset life along with the life of the funds required to finance the asset may not be possible. A firm that

Captive insurance, discuss the meaning and advantage of captive insurance

discuss the meaning and advantage of captive insurance

Application of discriminant analysis, Application of Discriminant Analysis ...

Application of Discriminant Analysis Application of Discriminant Analysis to the Selection of Applicants, Discriminative analysis is a statistical model such can be used to ac

Venture Capital, In Term Sheets, what are the outcomes of Economics and Con...

In Term Sheets, what are the outcomes of Economics and Control?

Net Income Problem:, A firm has the following accounts: What is the net inc...

A firm has the following accounts: What is the net income for the period? Net patient revenue = $1,500,000 Supply expense = $200,000 Depreciation expense = $100,000 Salaries and b

Calculate the ex-right stock price, DIY Inc. plans to raise $200,000 with a...

DIY Inc. plans to raise $200,000 with a right offering. The current stock price is $100 and there are 80,000 shares outstanding. a. If DIY sets the subscription price to be $80

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages