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

Compute the payback period - example, Compute the Payback Period - Example ...

Compute the Payback Period - Example Cedes restriction has the following details of two (2) of the future production plans. Just one of these machines will be purchased and su

Production, Pick a product of your choice and identify the stages of produc...

Pick a product of your choice and identify the stages of production

Financial markets, objectives

objectives

Disadvantage of leasing an asset, Disadvantage of Leasing an Asset A. ...

Disadvantage of Leasing an Asset A. It is a pre-conditional finance as on the needs of asset B. In the long term the lease charges might out-weigh the cost of buying own as

Estimate the economic rate of return, Production data has been fit to a Fet...

Production data has been fit to a Fetkovich type curve. Given the following information, answer the questions: Date of first production plotted for the Fetkovich type curve matc

Calculate interest rate, Imagine Joy is the manager of a bank named Money ...

Imagine Joy is the manager of a bank named Money Talks Bank of Virginia . This bank has recently issued new loans to customers. Joy wants you, the business analyst to prepare a re

Fixed asset and total asset turnover ratio, Fixed Asset and Total Asset Tur...

Fixed Asset and Total Asset Turnover Ratio Fixed asset turnover = Annual Sales / Fixed Assets This ratio indicate the efficiency along with which, the fixed assets we

Define meaning of investment, Define Meaning of Investment Meanin...

Define Meaning of Investment Meaning of Investment: Investment involves making of a sacrifice in the present with hope of deriving future advantages. Investment has many

Debtors or accounts receiver turnover, Debtors or Accounts Receiver Turnove...

Debtors or Accounts Receiver Turnover Formula is as follow: Debtors/accounts receiver turnover = Annual credit sales/Average debtor The ratio signify the number of ti

Market for funds, Market For Funds Market for Funds and Financial Inst...

Market For Funds Market for Funds and Financial Institutions in Middle Asia 1. Financial markets refer to an elaborate system of the financial institution and arrange

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages