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

GE matrix, Characteristics of each component of GE matrix

Characteristics of each component of GE matrix

Blueprinting a full-service travel agency experience, Blueprinting a full-s...

Blueprinting a full-service travel agency experience 1.Present this service organisation as a blueprint with a flowchart and 500 words minimum.Flowchart Must show time dimensions

What are the characteristics of an effective control system, QUESTION S...

QUESTION Strategic decisions are the essence of strategic management. According to Pears & Robinson, typically, strategic issues have certain dimensions. Write short notes on e

Technical infrastructure , 1 -  Develop a plan for an e-strategy that  make...

1 -  Develop a plan for an e-strategy that  make sure  an organisation retains its competitive  benefit in a global market. 2 - Specify the technical infrastructure needed in an

Framework for a company to manage its application portfolio, Question 1: ...

Question 1: (a) Explain a framework for a company to manage its application portfolio. (b) Apply the application portfolio concept to show the different applications for a

Recommendation for future strategies, QUESTION As a member of a strateg...

QUESTION As a member of a strategic management team, you are assigned to write a functional report on the future of the ICT industry in Mauritius. You are expected to consider

What is organizational design, 1.Middle managers are often at the center of...

1.Middle managers are often at the center of efforts to develop tactical plans to implement established strategies. How are tactical plans typically established? What challenges co

Managerial decision analysis, A transport company must collect and deliver ...

A transport company must collect and deliver loads from and to various locations along a straight road (call it the x -axis). The truck must start and end each day at the origin (t

Formulate a corporate level strategy, For your first assignment you describ...

For your first assignment you described the recent macro and micro scale developments of the sector you are or would like to be in.  Now select a prominent company (it can be eithe

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