Accounts Payable Turnover Calculator

Supplier Payment Speed

Payables turnover estimates how often a business pays off its average supplier payable balance in a period.

Formula: payables turnover = purchases / average payables; payable days = period days / turnover.

Understanding Accounts Payable Turnover

1. What This Calculator Measures

Payables turnover measures how quickly a business pays suppliers during a period.

2. How the Calculation Works

The calculator divides purchases by average payables and estimates average payable days.

3. Formula or Rule Used

payables turnover = purchases / average accounts payable.

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