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....
A short-term liquidity measure used to quantify the rate at which a company pays
off its suppliers. Accounts payable turnover ratio is calculated by taking the total ...
Definition of creditors' turnover: The ratio between credit sales that are not paid
and the sum of the credit sales. This illustrates how effective a...
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 ...
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 | Calculation | Formula | Example. ... If a
company is paying its suppliers very quickly, it may mean that the suppliers are ...
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 ...
Accounts payable turnover ratio indicates the creditworthiness of the company. A
high ratio means prompt payment to suppliers for the goods purchased on ...
Definition of inventory turnover: Number of times a firm's investment in inventory
is recouped during an accounting period. Normally a high number indicates a ...