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03-16-2008, 08:07 PM
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#1 (permalink) |
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Status: n00b
Join Date: Mar 2008
Posts: 25
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Accounts payable turnover ratio
Can some body let me know what is the formula I should use to find out Accounts payable turnover.
Thanks. |
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03-17-2008, 12:55 AM
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#2 (permalink) |
Status: Owner/Administrator
Join Date: Mar 2008
Location: Bay Area, CA
Posts: 158
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As far as I know, there is only one formula for Accounts Payable turnover ratio:
Accounts Payable Turnover = Total Purchases / Average Accounts Payable APT is a good way to measure how many times per period the company pays its average payable amount. Investors are interested in this from some reason.
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Zahid H. Lilani |
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