Tag: AP Turnover
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Measuring Supplier Management: Understanding the Accounts Payable Turnover Ratio
The Accounts Payable (AP) Turnover Ratio is a key operational metric that reveals how quickly a company pays its suppliers (its short-term creditors). It calculates the number of times, on average, a company pays off its accounts payable balance during a specific period. While paying bills instantly may seem prudent, a high AP Turnover (paying…