Отправлено: 22.07.25 14:42. Заголовок: What does AP Turnover mean in accounting?

AP Turnover short for Accounts Payable Turnover, reflects how often a company pays its accounts payable during an accounting period. It’s a financial metric used to assess how efficiently a business pays its vendors or suppliers. Calculated by dividing total purchases (or cost of goods sold) by average accounts payable, it helps determine payment cycles. A higher AP Turnover indicates faster payments, while a lower ratio could imply slower settlements or potential cash management issues. This ratio helps analyze operational efficiency and vendor relationships.