Accounts Payable Turnover Ratio Calculator

✖Total Supply Purchases refers to the aggregate amount spent by a company on acquiring supplies within a specific accounting period.ⓘ Total Supply Purchases [TSP]			+10% -10%
✖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.ⓘ Beginning Accounts Payable [BAP]			+10% -10%
✖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.ⓘ Ending Accounts Payable [EAP]			+10% -10%

✖Accounts Payable Ratio measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers.ⓘ Accounts Payable Turnover Ratio [APTR]

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Formula

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Accounts Payable Turnover Ratio

Formula

`"APTR" = "TSP"/(("BAP"+"EAP")/2)`

Example

`"18.18182"="200000"/(("10000"+"12000")/2)`

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Accounts Payable Turnover Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2)
APTR = TSP/((BAP+EAP)/2)
This formula uses 4 Variables

Variables Used

Accounts Payable Ratio - Accounts Payable Ratio measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers.
Total Supply Purchases - Total Supply Purchases refers to the aggregate amount spent by a company on acquiring supplies within a specific accounting period.
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.
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.

STEP 1: Convert Input(s) to Base Unit

Total Supply Purchases: 200000 --> No Conversion Required
Beginning Accounts Payable: 10000 --> No Conversion Required
Ending Accounts Payable: 12000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

APTR = TSP/((BAP+EAP)/2) --> 200000/((10000+12000)/2)

Evaluating ... ...

APTR = 18.1818181818182

STEP 3: Convert Result to Output's Unit

18.1818181818182 --> No Conversion Required

FINAL ANSWER

18.1818181818182 ≈ 18.18182 <-- Accounts Payable Ratio

(Calculation completed in 00.004 seconds)

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Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

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< 3 Solvency Ratio Calculators

Accounts Payable Turnover Ratio

Go Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2)

Working capital

Go Working Capital = Current Assets-Current Liabilities

Debt to worth ratio

Go Debt to Worth Ratio = Total Liabilities/Net Worth

Accounts Payable Turnover Ratio Formula

Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2)
APTR = TSP/((BAP+EAP)/2)

What is Accounts Payable Turnover Ratio?

The Accounts Payable Turnover Ratio, also known as the Payables Turnover Ratio or Creditors Turnover Ratio, is a financial metric that measures how efficiently a company manages its accounts payable by evaluating how quickly it pays its suppliers. It indicates the relationship between the company's purchases and its average accounts payable balance during a specific period.
A higher accounts payable turnover ratio generally indicates that a company is paying its suppliers more frequently, which can signify efficient management of trade credit terms and better liquidity. Conversely, a lower ratio might indicate that the company takes longer to pay its suppliers, potentially signaling cash flow issues or strained relationships with suppliers.
It's important to note that the ideal accounts payable turnover ratio can vary depending on industry norms, business practices, and the company's specific circumstances.

How to Calculate Accounts Payable Turnover Ratio?

Accounts Payable Turnover Ratio calculator uses Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2) to calculate 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 calculate Accounts Payable Turnover Ratio using this online calculator? To use this online calculator for Accounts Payable Turnover Ratio, enter Total Supply Purchases (TSP), Beginning Accounts Payable (BAP) & Ending Accounts Payable (EAP) and hit the calculate button. Here is how the Accounts Payable Turnover Ratio calculation can be explained with given input values -> 18.18182 = 200000/((10000+12000)/2).

FAQ

What is Accounts Payable Turnover 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 and is represented as APTR = TSP/((BAP+EAP)/2) or Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2). Total Supply Purchases refers to the aggregate amount spent by a company on acquiring supplies within a specific accounting period, 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 & 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.

How to calculate Accounts Payable Turnover 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 is calculated using Accounts Payable Ratio = Total Supply Purchases/((Beginning Accounts Payable+Ending Accounts Payable)/2). To calculate Accounts Payable Turnover Ratio, you need Total Supply Purchases (TSP), Beginning Accounts Payable (BAP) & Ending Accounts Payable (EAP). With our tool, you need to enter the respective value for Total Supply Purchases, Beginning Accounts Payable & Ending Accounts Payable and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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