Accounts Payable Turnover
Accounts payable turnover ratio shows how quickly company is paying to its suppliers for services or goods and materials. If payables turnover is very low, it may signify different reasons behind it:
To know which reason exactly does influence to the particular company, this ratio should be compared to previous periods of the same company and to other companies in the industry.
Accounts payables of one company are accounts receivables for another company. ‘Payable turnover ratio’ usually is calculated together with ‘Receivables turnover ratio’.
Investment psychology gains momentum in contemporary business world
Most Popular Articles
Investing in Gold (I)
Investing in Gold (II)
Investing in Uncertain Period
ARE YOU INTERESTED IN:
BROWSE ON DICTIONARY: