Accounts Payable Turnover Ratio
The accounts payable turnover ratio measures how quickly a company pays its suppliers within a period. Calculated by dividing net credit purchases by average accounts payable, it shows payment efficiency and financial discipline. A high ratio indicates timely payments, while a low one may suggest cash flow challenges or delayed settlements.
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Acid-Test Ratio
The acid-test ratio, also called the quick ratio, evaluates a company's short-term liquidity by measuring its ability to pay current…
Accumulated Depreciation
Accumulated depreciation is the total depreciation expense recorded on an asset since its purchase. It reduces the asset's book value…
Accounting Ratio
An accounting ratio is a numerical comparison derived from financial statements to evaluate a company's performance, efficiency, or liquidity. Ratios…
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