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Accounts Payable Turnover Ratio Formula

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Accounts Payable Ratio measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers. Check FAQs

APTR = \frac{TSP}{\frac{BAP + EAP}{2}}

APTR - Accounts Payable Ratio?TSP - Total Supply Purchases?BAP - Beginning Accounts Payable?EAP - Ending Accounts Payable?

Accounts Payable Turnover Ratio Example

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Here is how the Accounts Payable Turnover Ratio equation looks like with Values.

Here is how the Accounts Payable Turnover Ratio equation looks like with Units.

Here is how the Accounts Payable Turnover Ratio equation looks like.

18.1818 = \frac{200000}{\frac{10000 + 12000}{2}}

18.1818 = \frac{200000}{\frac{10000 + 12000}{2}}

18.1818 = \frac{200000}{\frac{10000 + 12000}{2}}

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Accounts Payable Turnover Ratio Solution

Follow our step by step solution on how to calculate Accounts Payable Turnover Ratio?

FIRST Step Consider the formula

APTR = \frac{TSP}{\frac{BAP + EAP}{2}}

Next Step Substitute values of Variables

∴

APTR = \frac{200000}{\frac{10000 + 12000}{2}}

Next Step Prepare to Evaluate

∴

APTR = \frac{200000}{\frac{10000 + 12000}{2}}

Next Step Evaluate

∴

APTR = 18.1818181818182

LAST Step Rounding Answer

∴

APTR = 18.1818

Accounts Payable Turnover Ratio Formula Elements

Variables

Accounts Payable Ratio

Accounts Payable Ratio measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers.

Symbol: APTR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Accounts Payable Ratio

Total Supply Purchases

Total Supply Purchases refers to the aggregate amount spent by a company on acquiring supplies within a specific accounting period.

Symbol: TSP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Total Supply Purchases

Beginning Accounts Payable

Beginning Accounts Payable refers to the balance of accounts payable at the start of a specific accounting period, such as a month, quarter, or year.

Symbol: BAP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Beginning Accounts Payable

Ending Accounts Payable

Ending Accounts Payable refers to the balance of accounts payable at the end of a specific accounting period, such as a month, quarter, or year.

Symbol: EAP

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Ending Accounts Payable

Other formulas in Solvency and Stock Ratio category

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Go Earnings per share

EPS = \frac{E}{TSO}

Go Price-Earnings Ratio

PE = \frac{P}{EPS}

How to Evaluate Accounts Payable Turnover Ratio?

Accounts Payable Turnover Ratio evaluator uses Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2) to evaluate the Accounts Payable Ratio, The Accounts Payable Turnover Ratio formula is defined as a financial metric that measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers. Accounts Payable Ratio is denoted by APTR symbol.

How to evaluate Accounts Payable Turnover Ratio using this online evaluator? To use this online evaluator for Accounts Payable Turnover Ratio, enter Total Supply Purchases (TSP), Beginning Accounts Payable (BAP) & Ending Accounts Payable (EAP) and hit the calculate button.

FAQs on Accounts Payable Turnover Ratio

What is the formula to find Accounts Payable Turnover Ratio?

The formula of Accounts Payable Turnover Ratio is expressed as Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2). Here is an example- 18.18182 = 200000/((10000+12000)/2).

How to calculate Accounts Payable Turnover Ratio?

With Total Supply Purchases (TSP), Beginning Accounts Payable (BAP) & Ending Accounts Payable (EAP) we can find Accounts Payable Turnover Ratio using the formula - Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2).

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Accounts Payable Turnover Ratio Formula

Accounts Payable Turnover Ratio Example

Accounts Payable Turnover Ratio Solution

Accounts Payable Turnover Ratio Formula Elements

Other formulas in Solvency and Stock Ratio category

How to Evaluate Accounts Payable Turnover Ratio?

FAQs on Accounts Payable Turnover Ratio

Variable Name