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 ...
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, or simply the payable turnover, is a liquidity
ratio ... This means that Bob pays his vendors back on average once every six ...
Nov 23, 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, explanation, example and interpretation of creditors turnover ratio.
This ratio is also called payable turnover ratio.
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...
Accounts payable turnover ratio indicates the creditworthiness of the company. A
high ratio means prompt payment to suppliers for the goods purchased on ...
Definition. Accounts payable turnover ratio is an accounting liquidity metric that
evaluates how fast a company pays off its creditors (suppliers). The ratio shows ...