Accounts payable of the company on and were $23,000 and $34,900 respectively. It returned goods costing $5,900 to suppliers. ExamplesД®xample 1: Company Оі purchased goods having invoice value of $243,200 on credit during the year ended Dec 31, 2010. Other things equal, a supplier should prefer to sell to a company with higher accounts payable turnover ratio. This ratio can be of great importance to suppliers since they are interested in getting paid early for their supplies. Thus higher value of accounts payable turnover is favorable. A higher value indicates that the business was able to repay its suppliers quickly. AnalysisДЄccounts payable turnover is a measure of short-term liquidity. Accounts-payable turnover is calculated by dividing the total amount of purchases made on credit by the average accounts-payable balance for any given period. Total pembelian secara kredit tahun ini Rp 100 juta. Agar lebih mudah memahami cara menghitung account payable turnover, berikut contoh kasusnya, sebut saja perusahaan A. Sometimes cost of goods sold is used in the denominator instead of credit purchases. AP Turnover TSP : (BAP + EAP) : 2 TSP total supply purchases. It is to be search for in the annual report of the company.

Net credit purchases figure in the denominator is not easily discoverable since such information is not usually available in financial statements.

To calculate average accounts payable, divide the sum of accounts payable at the beginning and at the end of the period by 2. FormulaДЄccounts payable turnover is usually calculated as: Payables Turnover It measures short term liquidity of business since it shows how many times during a period, an amount equal to average accounts payable is paid to suppliers by a business. So by using the formula of account payable turnover, weвЂ™ll get something like, this AP turnover ratio is equal to your net credit purchase divided by the average account payables. Accounts payable turnover is the ratio of net credit purchases of a business to its average accounts payable during the period.