Share this site with del.icio.us Share this site with furl Share this site with stumbleupon Share this site with google Add this site to Yahoo Bookmarks Click here to add us to your favorites Subscribe to our Feed





days accounts payable (Days A/P)

Definition

Average number of days a firm takes to pay its bills, used as a measure of how much it depends on trade credit for short-term financing. As a rule of thumb, a well managed firm's days A/P do not exceed 40 to 50 days. Also called days sales In payables. Formula: Average accounts payable x 365 ÷ cost of sales.


Browse by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z