How Fast Trade Payables Turn Over
Compare credit purchases with average trade payables wey you owe.
Your numbers
Trade-payables turnover ratio
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
Compare scenarios
You fit keep up to three snapshots for this tab. Loading one go replace the present inputs.
Formula
Use T = S/A and D = d/T. S na net credit purchases, A na average trade payables, and d na days for the same period. T na payables turnover and D na payment days.
Compare credit purchases with average trade payables wey you owe.
Example wey show the calculation
- Net purchases on credit
- 360000
- Trade payables on average
- 30000
- Number of days for the period
- 365
- Trade-payables turnover ratio
- 12 number of times
- Days before payment on average
- 30.4166666667 days
Where e fit work and limits
Business ratio from inputs for the same consistent period. Accounting definitions and industry comparisons fit differ.
We check inputs for missing values and allowed ranges. Result wey pass the finite numeric range no go show. Rounding affect wetin display, while calculation use the model numeric precision.
Check your units and assumptions before you rely on result. Changing label no convert currency or physical unit.
Version of di formula: 4339fe1b699c · Example don get check: