accounting byte
mariamehra00@gmail.com
What does a high Accounts Payable Turnover Ratio indicate? (76 อ่าน)
16 ต.ค. 2567 18:22
Payable Turnover Ratio also implies that the firms are paying their suppliers at a fast pace since a higher ratio gives the impression that the accounts Payable is turned over more frequently. This could be interpreted as good cash flow management and those payments are made as and when due to enhance their relationships with the suppliers. But it may also mean that the firm is not leveraging the full potential of the credit sales in line with the credit terms offered, thus missing out on other valuable needs for cash for other investment opportunities. This is a sample checklist that businesses are faced with while having to decide between the need to pay suppliers on time to avoid penalties, and the need to ensure they are flexible with their cash flows in business.
106.219.163.228
accounting byte
ผู้เยี่ยมชม
mariamehra00@gmail.com