The accounts payable turnover ratio or (APTR) is one of the efficiency ratios investors use to determine how efficient a company is at paying the money it owes its suppliers for raw materials, products or services. A ratio of 3 means it would take the company approximately 132 days to repay its suppliers (days in a year divided by the ratio).
A high number of APTR can both be a positive or negative sign, on the one hand we could assume that the company has got a healthy cashflow and it managed to establish a trust relationship with its suppliers, however it could also mean that the company might have problem paying its bills. Therefore it is important to look at other ratios as well.
The formula for determining the Accounts Payable Turnover Ratio is defined as:
\(APTR\): Account payable turnover ratio
\(Cost\text{ }of\text{ }Revenue\): The total cost in producing, marketing, distributing the products or services.
\(Accounts\text{ }Payable\): the amount of money the company owes its suppliers.
Find Accounts Payable Turnover Ratio
Use this calculator to find out how efficient a company is at paying its suppliers.
The total cost in producing, marketing, distributing the products or services.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
the amount of money the company owes its suppliers.
enter a number in thousands, enter 5 for 5,000 or 50 for 50,000
Please note, that all calculators provided are for informational and educational purposes ONLY, and should NOT be taken as professional financial advice.
