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

Functions of the stock exchange, Functions of the Stock Exchange The e...

Functions of the Stock Exchange The essential function of a stock exchange is the raising of funds for investment in long-term assets. Whereas this basic function is very sign

Draw the total expenses vs. time curve, For the set of activities shown in ...

For the set of activities shown in the table below, draw the total expenses vs. time curve using the following data: The labor rates are as follows: Labor # 1 (L1) rate = 30

Evaluate the riskiness of an investment , Compare the three investments bel...

Compare the three investments below in terms of their riskiness. What is the best way to evaluate the riskiness of an investment given the information you have on them?

Define the term - right issues, Define the term - Right Issues If an...

Define the term - Right Issues If an existing company intends to raise extra funds, it can do so by borrowing or b issuing new shares. One of the most general methods for a

Importance of interest rates, Importance of Interest Rates These are o...

Importance of Interest Rates These are of a specifically relevance to a finance manager since: i) They measure the cost of borrowing. ii) Interest rates in a country influen

Formation of sole proprietorship business, Formation of Sole Proprietorship...

Formation of Sole Proprietorship Business When an individual plans to start a business, his or her main objective is to earn profit but there are a number of factors to take in

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

capm model is not suitable in an international setting, Why do several cri...

Why do several critics say the CAPM model is not suitable in an international setting? Please describe a way that the CAPM model could be adapted for international applications.

Throughput accounting, state a case where throughput according system is re...

state a case where throughput according system is required

Captive insurance, discuss the meaning and advantage of captive insurance

discuss the meaning and advantage of captive insurance

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages