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

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

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

Explain performance budgeting and zero base budgeting, Write short notes on...

Write short notes on the following: a) Performance budgeting b) Zero base budgeting c) Factors affecting dividend decisions d) Accrual concept

Short term fianacing, discuss the three approaches to the short -term finan...

discuss the three approaches to the short -term financing problem and provide relevant examples of each.

Meaning of a sentence, on this sentence: "all have an interest in understan...

on this sentence: "all have an interest in understanding what drives trade" please explain what''s meaning of "what drives trade"?

Australi a, i ordered case study 1 susam and malcom. when i open the docume...

i ordered case study 1 susam and malcom. when i open the document is completely different, not the same case study an is only relivent in the usa not australia... do you have the c

DESICIONES DE INVERSION A LARGO PLAZO, LOMBARD COMPANY

LOMBARD COMPANY

Discounts and credit terms, Discounts and Credit Terms Credit Terms ...

Discounts and Credit Terms Credit Terms Credit terms involve both the length of the credit time and the discount specified. The terms 2/10, n/30 means that a 2 percent d

Federal funds market-federal funds rate and discount rate, What does reserv...

What does reserve requirements and the discount rate? What the Fed Does: Reserve needs and the Discount Rate The federal funds market Financial market which allows banks

Question 7.1, Assume the managers of Fort Winston Hospital are setting the ...

Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates. Variable costs $ 5.00 Annual fixed c

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages