Accounts Payable Turnover Ratio

/Accounts Payable Turnover Ratio

Accounts Payable Turnover Ratio

  • Calculates the average rate at which payables are paid
  • Generally favorable: shorter result
  • Measure of: operating efficiency and working capital management
  • +/- 45 Days considered reasonable
  • Heavily influenced by: industry type

Accounts_Payable_Turnover

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By | 2018-01-22T10:23:41+00:00 August 28th, 2015|0 Comments

About the Author:

John Gillingham is a CPA and Accounting App Developer in San Francisco, California. Check the iOS App Store for Accounting Flashcards and the Debits & Credits Game. On Android: Learn Accounting Flashcards. Also on Kindle and iBooks.

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