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Trade Payables Turnover Ratio is also known as Accounts Payable Turnover Ratio or the Creditors Turnover Ratio. This ratio is used to measure the number of times the business is paying off its creditors or suppliers in an accounting period.
Jan 7, 2024 · The payables turnover ratio measures how efficiently a company manages payment of its outstanding accounts payable during a period. It indicates the number of times average accounts payable are paid during a fiscal year.
Mar 16, 2023 · Trade Payable Turnover Ratio is a financial ratio that measures how efficiently a company pays its suppliers for the goods and services it has purchased on credit. It is calculated by comparing the cost of goods sold to the average accounts payable during a particular period.
Trade Payable Turnover Ratio is a financial ratio that measures how efficiently a company pays its suppliers for the goods and services it has purchased on credit. It is calculated by comparing the cost of goods sold to the average accounts payable during a particular period.
One way to show a trade creditor you’re a good partner is to have a good creditors turnover ratio. This figure shows how often you pay a trade creditor in a given time period. The formula is Creditors Turnover Ratio = (Total Credit Purchases – Purchase Returns)/((Beginning Trade Accounts Payable + Ending Trade Accounts Payable)/ 2)
Jun 26, 2024 · The accounts payable turnover ratio is a short-term liquidity measure used to quantify the rate at which a company pays what it owes to its suppliers.
Creditor’s turnover ratio is also known as Payables Turnover Ratio, Creditor’s Velocity and Trade Payables Ratio. It is an activity ratio that finds out the relationship between net credit purchases and average trade payables of a business.
Jun 10, 2024 · The Trade Payables Turnover Ratio, also known as the Accounts Payable Turnover Ratio or Creditors Turnover Ratio, is a financial indicator that gauges the frequency with which a business clears its debts with creditors or suppliers within a specific accounting duration.
What is the Accounts Payable Turnover Ratio? The accounts payable turnover ratio, also known as the payables turnover or the creditor’s turnover ratio, is a liquidity ratio that measures the average number of times a company pays its creditors over an accounting period.
Jun 22, 2022 · Trade Receivable Turnover Ratio: A high receivables turnover ratio can indicate that’s a company collection of accounts receivable is efficient and that it has a high proportion of quality customers who pay their debts quickly. A company could improve its turnover ratio by making changes to its collection process.
