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imported>Doug Williamson |
imported>Doug Williamson |
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| ''Financial ratio analysis - management efficiency ratios.'' | | ''Options analysis''. |
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| 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.
| | The sensitivity of the market value of an option with respect to changes in the time to expiry of the option. |
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| Payables days measures the average number of days taken to pay trade suppliers.
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| 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.
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| The payables days are:
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| (50,000 / 400,000) X 365
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| = 45.6 days
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| 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.
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| Also known as Creditor days or Days payables outstanding.
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| == See also == | | == See also == |
| * [[Creditors]] | | * [[Greeks]] |
| * [[Debtor days]]
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| * [[Management efficiency ratio]]
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| * [[Payables management]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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Revision as of 15:26, 14 August 2013
Options analysis.
The sensitivity of the market value of an option with respect to changes in the time to expiry of the option.
See also
