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

Sanlam, write an essay of approximately 1500 words in which you critically ...

write an essay of approximately 1500 words in which you critically analyse and evaluate the value innovation strategy that sanlam opted for in their 2009 blue star financial advise

Explain dimensional performance matrix, Q. Explain Dimensional performance ...

Q. Explain Dimensional performance matrix? The 6-dimensional performance matrix Similar to the balanced scorecard, Fitzgerald (1991) created a 6 dimensional performance m

Beyond budgeting approach, The beyond budgeting approach may include the fo...

The beyond budgeting approach may include the following: Use of rolling budgets concentrating on cash forecasts and not cost control. Budgets revised more frequently

Ideal mission statement of a business organisation, Question: a) (i) H...

Question: a) (i) How many components are there in an ideal mission statement of a business organisation? (ii) Name these components? b) Using the above named component

A strategic vision is differ from a mission statement, A Strategic Vision i...

A Strategic Vision is Differ from a Mission Statement: Whereas the chief concern of a strategic vision is with "where we are going & why", a company's mission statement usua

Describe the administration controls, Administration controls are performan...

Administration controls are performance measurement systems e.g. Management accounting 'exceptionreporting' systems which compare actual performance to a predetermined target, goal

Designing stakeholders evaluation policies, 1. What stakeholders would you ...

1. What stakeholders would you have in the designing of the teacher evaluation policies? 2. What would be inclusive in a teacher evaluation process? (be very specific) 3. When

Describe the concept of virtual organisation, Question: (a) Describe th...

Question: (a) Describe the concept of virtual organisation. (b) ‘It is critical for an organisation to attain congruence between its strategy and organisational structure

Explain the factors that cause unsuccessful implementation, Question: S...

Question: Strategy implementation can be said to consist of securing resources, organizing these resources and directing the use of these resources within and outside the organ

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