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

Credit standards, Credit Standards A firm may follow a stringent or a ...

Credit Standards A firm may follow a stringent or a lenient credit policy. The firm subsequent of a lenient credit policy tends to sell on credit to customers on extremely lib

investors are risk neutral, At t = 0, a 3-year, 7% coupon corporate bond w...

At t = 0, a 3-year, 7% coupon corporate bond with face value $1,000 is trading at a credit spread of 15%. The risk free rate is constant and equal to 4% for all maturities. The rec

Modern methods of capital projects, what are the modern methods of evaluati...

what are the modern methods of evaluating capital projects? how they different from old methods?

The importance of tax, Discuss business taxes and their importance in finan...

Discuss business taxes and their importance in financial decisions

Marginal cost and marginal revenue, Use the concepts of marginal cost and m...

Use the concepts of marginal cost and marginal revenue to derive an optimal capital budget for Company X, which has identified 7 possible investment projects and determined its cos

Yard stick required in ratio analysis, Yard Stick Required in Ratio Analysi...

Yard Stick Required in Ratio Analysis 1. Past performance of the company The company's previous performance past ratio is needed to gauge or measure the company's present

project on financial planning, Financial Planning Project Instructions: ...

Financial Planning Project Instructions: You will serve as a financial advisor for your client to develop a financial plan. You can compile all the worksheets introduced in eac

Finance functions, Finance Functions The functions of Financial Manage...

Finance Functions The functions of Financial Manager can broadly be split into two: The Managerial Functions and The Routine functions. Managerial Finance Functions

Explain the term - giving margin money to broker, Explain the Giving Margi...

Explain the Giving Margin Money to Broker Marin is the amount of money which is provided by customer to the brokers who have agreed to trade their securities. It may

Assets, thew amount of money investedin a retirement fund is an example of

thew amount of money investedin a retirement fund is an example of

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages