What do you meant by trade payable days, Financial Econometrics

Assignment Help:

Q. What do you meant by Trade payable days?

Year-end trade payables/Credit purchases (or cost of sales)x 365 days

This is the length of time taken to pay suppliers. Ratio can also be calculated using cost of sales, as credit purchases aren't 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 suppliers not extending credit in the future and may lose goodwill. High trade payable days  may  also  indicate  that  business  has  no  cash  to  pay  which  indicates insolvency problems.


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

Working capital cycle in a manufacturing business, Working capital cycle in...

Working capital cycle in a manufacturing business Average time raw materials are in stock   +   Time taken to produce goods   +   Time tak

New allocation of his inheritance , Adding a Riskless Cash Fund: Assume now...

Adding a Riskless Cash Fund: Assume now that a riskless cash fund P0 is also available to invest in. The risk free rate is 0.05 for both lending & borrowing. Obtain Pythagoras's ne

The Costs of Production, •Using MS Excel or a table in MS Word, complete Ta...

•Using MS Excel or a table in MS Word, complete Table-1 (Joseph Farms, Inc., Cost and Revenue Data). ?Assume that the price is $165. ?Assume the fixed costs are $125, at an output

Effective yield to maturity, Research in Motion (RIM), once known as the gl...

Research in Motion (RIM), once known as the global leader in wireless innovation, has lost its darling status after the introduction of the Apple iPhone.  In 2011, RIM's stock pric

Intercorporate investments, Intercorporate investments: DI has a 25% ...

Intercorporate investments: DI has a 25% interest in a gold mine in the Yukon. They have held this investment for eighteen months. During this time it has not made any mon

Chapter , a debit is used to record

a debit is used to record

Determine the time zero value of the swap, You have been provided with the ...

You have been provided with the following information on a fixed-fixed USD-GBP currency swap, thespot exchange rate between USD and GBP, and the USD and GBP yield curves:

Threshold cointegration, I need to conduct bivariate tests using two regime...

I need to conduct bivariate tests using two regime threshold cointegration for nonlinear relations. I have the code but it will nee some modification. Is there someone can help?

Investment generate an economic profit, An investment will require a $1.0 m...

An investment will require a $1.0 million cash outlay.  It will generate perpetual net cash inflows of $115,000 a year. Investors could earn 9 percent elsewhere by taking the same

Explain the working capital management, Q. Explain the Working capital mana...

Q. Explain the Working capital management? Working capital management Working capital management is administration of current liabilities and currentassets.Effective ma

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