What Is Days Payable Outstanding?
Accounts payable turnover days, also known as the average payment period, is a measure of how long it takes a company to pay off a supplier's arrears. It belongs to the company's operating capability analysis.
Accounts payable turnover days
- Example of calculation of accounts payable turnover rate:
- Table 1 Company A's simplified balance sheet Unit: 10,000 yuan
- Operating cost is 36.88 million yuan