Q » Explain payable turnover ratio.

Steven

06 Dec, 2025

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A » The payable turnover ratio measures how efficiently a company pays off its suppliers over a specific period. Calculated by dividing net credit purchases by average accounts payable, this ratio indicates the number of times a company pays its creditors annually. A higher ratio suggests efficient payment management, while a lower ratio may indicate potential liquidity issues or delayed payments affecting supplier relationships.

Michael

06 Dec, 2025

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A »The payable turnover ratio measures a company's efficiency in paying its suppliers. It's calculated by dividing total purchases by average accounts payable. For example, if a company has $100,000 in purchases and $20,000 in average accounts payable, its payable turnover ratio is 5, indicating it pays its suppliers 5 times a year.

Ronald

06 Dec, 2025

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A »The payable turnover ratio is a financial metric that measures how quickly a company pays off its suppliers. It is calculated by dividing total supplier purchases by the average accounts payable during a period. A higher ratio indicates efficient payment practices, reflecting strong credit management, while a lower ratio may suggest cash flow issues or poor payment processes. This ratio is crucial for assessing a company's financial health and operational efficiency.

Edward

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures a company's efficiency in paying its suppliers. It is calculated by dividing total purchases by average accounts payable. A higher ratio indicates faster payment to suppliers, while a lower ratio may suggest delayed payments or better credit terms. It helps assess a company's liquidity and cash management.

Charles

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures how quickly a company pays off its suppliers, calculated by dividing total supplier purchases by average accounts payable. For example, if a company has $200,000 in supplier purchases and an average accounts payable of $40,000, its payable turnover ratio is 5. This means the company pays its suppliers five times a year, indicating effective cash flow management and supplier relationship handling.

Anthony

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures a company's efficiency in paying its suppliers. It's calculated by dividing total purchases by average accounts payable. A higher ratio indicates faster payment to suppliers, while a lower ratio may indicate delayed payments or better credit terms.

Matthew

06 Dec, 2025

0 | 0

A »The payable turnover ratio is a financial metric that measures how efficiently a company pays its suppliers. It is calculated by dividing the total purchases by the average accounts payable during a specific period. A higher ratio indicates prompt payment to creditors, reflecting strong financial health, while a lower ratio may suggest potential liquidity issues or delayed payments to suppliers.

Daniel

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures a company's efficiency in paying its suppliers. It's calculated by dividing total purchases by average accounts payable. For example, if a company has $100,000 in total purchases and $20,000 in average accounts payable, its payable turnover ratio is 5, indicating it pays its suppliers 5 times a year.

Christopher

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures how efficiently a company pays its suppliers, calculated by dividing total supplier purchases by average accounts payable. A higher ratio indicates prompt payments, potentially improving supplier relationships, while a lower ratio may suggest cash flow issues. This ratio helps assess the company's financial health and management's effectiveness in handling short-term liabilities.

Joseph

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures a company's efficiency in paying its suppliers. It is calculated by dividing total purchases by average accounts payable. A higher ratio indicates faster payment to suppliers, while a lower ratio may suggest delayed payments or better credit terms. It helps assess a company's liquidity and cash management.

William

06 Dec, 2025

0 | 0

A »The payable turnover ratio measures how quickly a company pays off its suppliers, calculated as net credit purchases divided by average accounts payable. A high ratio suggests efficient payment practices. For example, if a company makes $500,000 in credit purchases and its average accounts payable is $100,000, its payable turnover ratio is 5, indicating that it pays off its suppliers five times during the period.

James

06 Dec, 2025

0 | 0