imported>Doug Williamson: Correct spelling.

2019-02-06T11:18:03Z

Correct spelling.

← Older revision		Revision as of 11:18, 6 February 2019
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	A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and a shorter payment terms may therefore be necessary.		A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and shorter payment terms may therefore be necessary.

imported>Doug Williamson: Create page. Sources: linked pages.

2019-02-03T18:21:00Z

Create page. Sources: linked pages.

New page

''Financial ratio analysis - management efficiency ratios.''

Payables days are a working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period.

Payables days measures the average number of days taken to pay trade suppliers.

For example: a company has an average of £50,000 of payables over a year in which the cost of goods sold was £400,000.

The payables days are:

(50,000 / 400,000) X 365

= 45.6 days

A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and a shorter payment terms may therefore be necessary.

Also known as Creditor days or Days payables outstanding.

== See also ==
* [[Creditors]]
* [[Debtor days]]
* [[Management efficiency ratio]]
* [[Payables management]]

[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Payables days - Revision history

imported>Doug Williamson: Correct spelling.

imported>Doug Williamson: Create page. Sources: linked pages.