Latest Free Templates

Wednesday, June 15, 2011

Days in Accounts Payable Ratio

Definition: Days in Accounts Payable shows how many days it takes to pay trade payable.

Formula:
Days in Accounts Payable = (Average Accounts Payable / COGS) * 365 days
Or,
Days in Accounts Payable = 365 Days / Accounts Payable Turnover

Example 1:
If credit purchases is $77,000; purchases returns $7,000; opening stocks $2,000; closing stocks $3,000; Average Accounts Payable $8,000.
Then,
Cost

0 comments:

Post a Comment