Accounts Payable Turnover Days

Metadata

  • Id: accounts_payable_turnover_days
  • Type: fundamentals
  • Subtype: ratios
  • Units: ratio
  • Decimal Points: 2
  • Currency Convertible: No
  • Tags: “accounts payable turnover days”, “APT days”, “creditor’s turnover days”, “payables turnover days”, “supplier payment days”

Description

Accounts payable turnover days is a measure of how long it takes a company to pay its suppliers for the goods and services it buys on credit. It shows the average number of days that a company’s accounts payable balance remains unpaid in a given period. A lower number means the company pays its suppliers faster, which can indicate good cash flow and creditworthiness. A higher number means the company takes longer to pay its suppliers, which can indicate cash flow problems or favorable credit terms. The formula for accounts payable turnover days is:
Accounts payable turnover days = 365 / Accounts payable turnover
Where: - Accounts payable turnover is R0063, accounts_payable_turnover