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

#title.personal finance., monthly income $7,000 Monthly repay $911 what is ...

monthly income $7,000 Monthly repay $911 what is the maximum I qualify for

Financial intermediaries, Financial Intermediaries These are instituti...

Financial Intermediaries These are institutions that link or mediate between the investors and savers: Some examples of financial intermediaries are as follow: 1. Comme

Cost of redeemable debentures and preference shares, Cost of Redeemable Deb...

Cost of Redeemable Debentures and Preference Shares Redeemable fixed return securities have an exact maturity period.  The cost of those securities is called redemption yield

Finance Problems, 1.) Assume a $1000 face value bond has a coupon rate of 8...

1.) Assume a $1000 face value bond has a coupon rate of 8.5 percent, pays interest semi-annually, and has an eight-year life. If investors are willing to accept a 10.25 percent rat

determine the benefit - cost and benefit/cost ratios, A City has determine...

A City has determined that building a new water distribution system using a new source of water would have an annual costs of $5,750,000 and annual net benefits of $4,250,000. The

Taxation position and profitability & liquidity, Taxation Position and Prof...

Taxation Position and Profitability & Liquidity Profitability and liquidity A company's capacity to pay dividend will be determined primarily with its capability to creat

Important points for working capital cycle, Important points for Working Ca...

Important points for Working Capital Cycle A lengthy working capital cycle is a sign of poor management of debtors and stock reflecting low turnover of debtors and stock and l

Compute Interest Assignment, Based on the example in Lesson 2, compute your...

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

Shareholders expectation and growth stage, Shareholders Expectation and Gro...

Shareholders Expectation and Growth Stage Growth Stage Dividend policy is likely to be influenced with firm's growth stage as like a young rapidly growing firm is probabl

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