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

In a cost/benefit analysis, Payback period = total cost of investment / est...

Payback period = total cost of investment / estimated annual revenue

Show the activity based budgeting, Q. Show the Activity based budgeting? ...

Q. Show the Activity based budgeting? Activity based budgeting (ABB) uses cost  'drivers'  for  different  support  resources consumed e.g. machining, quality control or admini

Determine best strategy, The number of households in a certain community is...

The number of households in a certain community is given by h(t) = 1:26t 2 +7800 households t years after 2001. The proportion (expressed as a decimal) of the households in this s

Make a histogram and obtain descriptive statistics, For this question you w...

For this question you will analyse box office receipt data for two movies: Harry Potter 1: Sorcerer's Stone and Pirates of the Caribbean 1: Curse of the Black Pearl . Go

Discuss whittington''s four generic approaches to strategy, Question 1: ...

Question 1: What is strategy? Discuss Whittington's four generic approaches to strategy. Which approach would be most suitable to Toyota? Question 2: Research has shown

Introduction to bread talk, Strategic management is a systematic analysis o...

Strategic management is a systematic analysis of the internal and external factors to develop strategic actions for organizational goals (Dobson & Richards, 2004). Bread Talk is a

Swot appendix, Over the next three weeks, you will perform a SWOT Analysis ...

Over the next three weeks, you will perform a SWOT Analysis specific to your topical area for your case study. This SWOT Analysis will become "Appendix A" for your case study.

Describe chargeback, A process in the industry where a wholesaler requests ...

A process in the industry where a wholesaler requests an amount that is the difference among the manufacturer's price to the wholesaler and the contract price to the resale custome

Prepare a short notes on normal distribution, Problem 1: a. Prepare a s...

Problem 1: a. Prepare a short notes on Normal distribution. b. The probability that an employee getting occupational disease is 20%. In a firm having five employees, what is th

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