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.
A financial report designed for general use by a wide audience management, investors, creditors, or regulators. It usually includes standard…
A version of the income statement that includes all items affecting net income, operating results, gains, losses, and unusual or…
The acid-test ratio, also called the quick ratio, evaluates a company's short-term liquidity by measuring its ability to pay current…
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