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

Application of discriminant analysis, Application of Discriminant Analysis ...

Application of Discriminant Analysis Application of Discriminant Analysis to the Selection of Applicants, Discriminative analysis is a statistical model such can be used to ac

Liquidity ratios - ratio analysis, Liquidity Ratios - Ratio Analysis I...

Liquidity Ratios - Ratio Analysis It also identified as working capital ratios. They show capability of the firm to meet its short term maturing financial obligation/recent l

What are potential solutions, Internal finance can avoid the agency costs o...

Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal financ

Government budget deficit, Government Budget Deficit If the Government...

Government Budget Deficit If the Government spends much more than it gets in from tax revenue, it runs a budget deficit. This deficit should be covered or financed either via

Development of plastic money in middle asia, Development of Plastic Money i...

Development of Plastic Money in Middle Asia Motive behind the Fast Development of This Finance (Plastic Money) In Middle Asia a) High incidences of fraud via dishonest empl

Materials management - supply chain management, Materials Management - Supp...

Materials Management - Supply Chain Management Materials management was once a task undertaken without the assistance of computers. Today it is unthinkable as the speed of cal

Describe briefly the term measures of variability, Question: (a) (i)...

Question: (a) (i) Define the term multicollinearity. (ii) Explain why it is important to guard against multicollinearity. (b) (i) Sometimes we encounter missing value

Discounted cash flow rate of return of a project, Given the following Prese...

Given the following Present Value Plot for Projects A and B, which are mutually exclusive projects, answer the following questions: (i) What is the DCFROR for Project A? fo

Finance function, defect of traditional defect

defect of traditional defect

Rights of ordinary shareholders, Rights of Ordinary Shareholders A. Ri...

Rights of Ordinary Shareholders A. Right to vote Choose BOD Purchase/Sales of assets B. Influence decisions as: Right to residual ass

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages