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

Explain the term - giving margin money to broker, Explain the Giving Margi...

Explain the Giving Margin Money to Broker Marin is the amount of money which is provided by customer to the brokers who have agreed to trade their securities. It may

Valuation of business, Valuation of Business A business may be valued ...

Valuation of Business A business may be valued for different type of reasons that as for merger, acquisition, or takeover or liquidation or outright sale. During purchasing a

Information signaling effect theory, Information Signaling Effect Theory ...

Information Signaling Effect Theory Advanced via Stephen Ross in year 1977, He argued such in an inefficient market; management can utilize dividend policy to signal significa

Ordinary annuity & Annuity due, What is the different between?

What is the different between?

Financial and Operational Hedging, There are four different commonly used f...

There are four different commonly used financial hedging techniques and some operational hedging techniques that firms use to manage currency risk. Drawing on literature, critical

Financial analysis, Bell is considering two marketing options for the Canad...

Bell is considering two marketing options for the Canadian launch of their internet-based video streaming service in the first quarter of 2012. i. A "soft" launch using prima

Evaluate the companys financing strategy, For any company that is quoted on...

For any company that is quoted on the London Stock Market, you are required to write a report to existing shareholders on any TWO of the following issues. Each answer carries equal

Define the terms proprietorship, Briefly define the terms proprietorship, p...

Briefly define the terms proprietorship, partnership, and corporation. Ans: The term proprietorship is used as a business owned by one person. Two or more than two people wh

Characteristics of sole proprietorship, Characteristics of sole proprietors...

Characteristics of sole proprietorship The main characteristics of sole proprietorships are as follows: 1) Ownership- The ownership of the business unit is by one person.

Stocks valuation, Supersoftware, Inc. earns a total of $200 million each ye...

Supersoftware, Inc. earns a total of $200 million each year to pay out to their 20 million shareholders. They are in a very competitive business and have found it a struggle to com

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages