Creditors payment period ratio, Finance Basics

Assignment Help:

Creditors Payment Period Ratio

Creditors payment period =   365/ Creditors turnover

                                          = (365 x Average creditors)/Annual credit purchases

  • The ratio signify the credit period granted via the suppliers that is the period
  • Within that the firm should pay its liabilities to the suppliers.
  • The shorter the duration the higher the creditors turnover and vice-versa.

Related Discussions:- Creditors payment period ratio

What are the financial intermediaries, What are the financial intermediarie...

What are the financial intermediaries? Financial Intermediaries: a. Mutual funds b. Pension funds c. Life insurance companies d. Banks

Illustrate the advantages of underwriting, Illustrate the Advantages of Und...

Illustrate the Advantages of Underwriting Underwriting presumes great significance as it offers the below benefits to the issuing company: (i) Issuing company is relied f

Journal entries, Sam start business with his savings $20000, a gift from hi...

Sam start business with his savings $20000, a gift from his parents $10000 and a personal loan from his friends of $5000. All money is deposited in a bank account.

Comparison between modern and traditional methods, Comparison between Moder...

Comparison between Modern and Traditional Methods Both modern and traditional methods will indicate or show strong weaknesses which like a company cannot use either to choose

Prepare a schedule of working capital and statement, The Balance Sheet of B...

The Balance Sheet of Bharat Machinery Ltd., as on December 31, 2009 and 2010 are as follows:  Items Dec. 31, 2009 Rs. Dec. 31, 2010 Rs.

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

Illustrates the roles of money, Illustrates the roles of money? Roles...

Illustrates the roles of money? Roles of Money: a. A medium of exchange An asset which individuals obtain for the intention of trading quite than for their own consump

Determining the rules for resolving conflict, Instructions: Read the Herzbe...

Instructions: Read the Herzberg findings related to extrinsic and intrinsic factors driving job satisfaction, dissatisfaction and motivation. To what extent should employers feel r

Determine the approximate payback period, The business plan for a new compa...

The business plan for a new company that has obtained a 5 year lease for operating a local bus service is shown below.  Items marked with an asterisk represent continuous cash flow

Limitations of credit cards - source of finance, Limitations of Credit Card...

Limitations of Credit Cards - Source of Finance Limitations of Credit Cards as a Source of Finance are as follow: i) These cards lead to overspending on the part of the hol

Write Your Message!

Captcha
Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd