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

#title. EM13545112., How much

How much

Calculate the incremental net present value, The following NPV's have been ...

The following NPV's have been calculated to determine if a compressor installation should be accelerated from Year 3 to Year 7. The compressor cost is $1,500,000. a. C

Objectives or goals of business, Objectives or Goals of Business 1. P...

Objectives or Goals of Business 1. Profit maximization - This is a traditional and a cardinal objective of a business. This is so for the following purpose: To

Project apparisal, challenges your likely to face when apparising a project...

challenges your likely to face when apparising a project on the implemtation stage

Working capital, #question.component.of working capital

#question.component.of working capital

Risk structure of interest rates, risk structure of interest rates 1. Defa...

risk structure of interest rates 1. Default risk 2. Liquidity 3. Income tax consideration 4. Expectations theory

Example of theoretical value, Example of Theoretical Value As a result...

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years. By assuming a discount rate of 20 perce

Cash and bonus issue - dividend, Cash and Bonus Issue - Dividend For a...

Cash and Bonus Issue - Dividend For a firm to pay cash dividends, it should contain adequate liquid funds.Though, under conditions of liquidity and financial constraints, a fi

Definition of stock exchange, Definition of Stock Exchange According to...

Definition of Stock Exchange According to Pyle: "Stock Exchange are market places where securities which have been listed thereon, may be bought and sold for either investme

Weighted average cost of capital, Below is information provided for tw...

Below is information provided for two companies, A and B. Assuming a risk-free rate of 2.5%, an effective tax rate of 40%, and a market risk premium of 5.5%, estimate th

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