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

Calculate effective annual interest rate, 1 st bank offers you a car loa...

1 st bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effective annual interest rate is the bank charging you?  Solution - Calculate

Investment opportunity and capital structure, Investment Opportunity and Ca...

Investment Opportunity and Capital Structure Investment Opportunity Lack of suitable investment opportunities, that is so, by positive returns or N.P.V., may encourage a

Government - measuring business performance, Government - Measuring Busines...

Government - Measuring Business Performance Government The Government is interested particularly in utility companies as KPLC, KPTC and such will offers public services -

The case of Apple, From the above case shareholders are very worried that a...

From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried

Calculate the overhead absorption rates, A manufacturing organisation has t...

A manufacturing organisation has three production cost centres, the cutting department, the processing department and the finishing department, and two service cost centres, the st

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

Operations research, A paper mill produces two grades of paper viz., X and ...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Constant amount per share or fixed d.p.s., Constant amount per share or fix...

Constant amount per share or fixed D.P.S. 1. The DPS is fixed in total amount of irrespective of the earnings level. These generate certainty and are consequently preferred vi

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