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

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 -

Political and technological factor - investment decisions, Political Factor...

Political Factors and Technological Factors - Investment Decisions i) Political factors - Under conditions of political uncertainty, that decisions cannot be completed as it

Public limited companies, Public Limited Companies These are joint sto...

Public Limited Companies These are joint stock companies that have sold shares to specific public and thus have attracted public money in form of share capital. Those compani

Weaknesses of wacc as discounting rate, Weaknesses of WACC as Discounting R...

Weaknesses of WACC as Discounting Rate WACC/Overall cost of capital has the following problems like a discounting rate as: It can simply be used as a discounting

Risk-return trade-off, Risk-Return Trade-Off Most financial decisions ...

Risk-Return Trade-Off Most financial decisions comprise alternative courses of action. The choices have different returns and risk. As like example, must we buy a replacement

Define the term contractual savings depository institutions, Define the ter...

Define the term contractual savings depository institutions. Contractual savings institutions: Contractual savings institutions obtain funds at periodic intervals onto a

Miller-orr model, Miller-Orr Model Unlike the Baumol's Model, Miller-O...

Miller-Orr Model Unlike the Baumol's Model, Miller-Orr Model is a stochastic or like probabilistic model that creates the more realistic assumption of doubt in cash flows.

Equities and sophisticated investors, Assignment Gary and Beth have acc...

Assignment Gary and Beth have accepted the asset allocation that you have given them, but are now looking to you to give them some advice on what stocks they should purchase. R

APR, Determine how much of a total loan payment applies towards principal a...

Determine how much of a total loan payment applies towards principal and how much applies towards interest for a home mortgage of $177,219 with a fixed APR of 7.5% of 20 years

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

Logistics Management - Supply Chain Management The objectives of logistics management are to: Determine the best routes to market; air, rail or road Determine if w

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages