What do you mean by trade payable days, Strategic Management

Assignment Help:

Q. What do you mean by Trade payable days?

Trade payable days (turnover)

  {Yearend trade payables / Credit purchases (or cost of sales)} x   365 days

This is the length of time taken to pay the suppliers.  The ratio can also be calculated using cost of sales, as credit purchases are not usually stated in the financial statements. High trade payable day's is good as credit from suppliers represents free credit. If it's too high then there is a risk of the suppliers not extending credit in the future and may lose goodwill.  High trade payable days can also indicate that business has no cash to pay which indicates insolvency problems.


Related Discussions:- What do you mean by trade payable days

Show the demerits of using return on investment, Q. Show the Demerits of us...

Q. Show the Demerits of using return on investment? The following disadvantages maybe experienced when choosing to use ROI as a primary performance measure. -  An accounting

Explain about financial analysis, Q. Explain about Financial analysis? ...

Q. Explain about Financial analysis? The objective of financial statements is to provide information to all users of accounts to help them for decision-making.  Note that most

Perform external and internal audits, Perform external and internal audits ...

Perform external and internal audits Follow the strategic development content then Aldi can perform external and internal audits. In external audit is considered an important

Show the example on residual income, Q. Show the example on residual income...

Q. Show the example on residual income? Division A makes and sells a single product and is assessed by the residual income it earns, the head office of the group uses a 10% cos

Ray''s satellite emporium, Ray's Satellite Emporium wishes to verify the be...

Ray's Satellite Emporium wishes to verify the best order size of their best selling satellite dish (model TS111).  Ray has estimated the yearly demand for this model at 1,000 units

Identify and evaluate a suitable business case , Tasks: With your chos...

Tasks: With your chosen scenario: o   Briefly describe the initial structure - set baseline o   Create a strategic project plan with: A strategic project analysis

Solve this question as soon as posibble, Tangy spices Ltd, the countries’ ...

Tangy spices Ltd, the countries’ biggest spices marketer has decided to launch a hostile bid for Italy’s major spice marketer Chilliano. This is a rare case of an Indian company ma

BCG matrix, i want to know the BCG matrix of MCB bank pakistan?

i want to know the BCG matrix of MCB bank pakistan?

How value chain framework important to managers, Question: The steps in...

Question: The steps in value chain analysis are to examine the company's primary activities and support activities. (a) Elucidate the primary and support activities. (b)

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