Accounts Payable Turnover Ratio Calculator
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Total purchases made on credit during the period
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Accounts payable balance at start of period
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Accounts payable balance at end of period
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Number of days in the accounting period
About Accounts Payable Turnover Ratio
The Accounts Payable Turnover Ratio measures how quickly a company pays its suppliers. A higher ratio indicates more frequent payments, while a lower ratio suggests slower payment cycles.
Industry benchmarks vary, but generally:
- 8-10 is considered good for many industries
- Too high may indicate overly aggressive payment terms
- Too low may signal cash flow problems