What Is the Meaning of Creditor Turnover?
Credit turnover is the basic average period of time your company takes to pay off its credit obligations. A short average payment period means you turn over credit relatively quickly. A long payment period means you take longer to pay off creditors....
Accounts payable turnover ratio is calculated by taking the total purchases ... The
opposite is true when the turnover ratio is increasing, which means that the ...
The accounts payable turnover ratio, or simply the payable turnover, is a liquidity
ratio ... This means that Bob pays his vendors back on average once every six ...
Accounts Payable Turnover Ratio | Calculation | Formula | Example. ... If a
company is paying its suppliers very quickly, it may mean that the suppliers are ...
The accounts payable turnover ratio is a company's purchases made on credit as
a percentage of average accounts payable. The formula for accounts payable ...
Accounts payable turnover ratio indicates the creditworthiness of the company. A
high ratio means prompt payment to suppliers for the goods purchased on ...
Nov 22, 2011 ... So, for knowing this time period, both parties calculate creditor turnover ratio. We
will calculate this because if our time period is more than ...
Definition. Accounts payable turnover ratio is an accounting liquidity metric that
evaluates how fast a company pays off its creditors (suppliers). The ratio shows ...
Definition, explanation, example and interpretation of creditors turnover ratio.
This ratio is also called payable turnover ratio.
Accounts payable turnover is the ratio of net credit purchases of a business to its
average accounts payable during the period. It measures short term liquidity of ...