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

How are financial trades made on an organized exchange, How are financial t...

How are financial trades made on an organized exchange? Ans: Each exchange-listed security is traded at a fixed location on the trading floor known as the post. The trading is

Explain the framework put forward by the basel committee, Question 1: a...

Question 1: a) Explain the framework put forward by the Basel Committee to ensure that banks and supervisors give appropriate attention to the second (supervisory review) and

What are depository institutions, What are depository institutions? Dep...

What are depository institutions? Depository institutions: intermediaries along with an important proportion of their funds derived through customer deposits as consists of: co

Liquidity preference theory, Liquidity Preference Theory This theory s...

Liquidity Preference Theory This theory states that short term bonds are extremely favorable than long term bonds for two (2) purposes. 1. Investors usually prefer short te

Foreign trade balance, Foreign Trade Balance If the Government buys or...

Foreign Trade Balance If the Government buys or imports much more than it sells or exports there will be a trade deficit such will require financing.The most important source

PESTAL ANALYSIS OF GODREJ FMCG, PESTAL ANALYSIS OF GODREJ FMCG

PESTAL ANALYSIS OF GODREJ FMCG

Evaluating financial statements, WHat are the expected rates of reimburseme...

WHat are the expected rates of reimbursement for this time frame for each player ?

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

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

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

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

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages