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 Definition of Days’ payables ratio - Finance dictionary
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Days’ payables ratio (See Chapter 11 of the Vernimmen)
The days’ payables ratio measures the average payment terms granted to the company by its suppliers (or the average actual payment period). It is calculated by dividing accounts payable by average daily purchases (VAT inclusive) or by sales, if the amount of purchases is not shown in the accounts. Days’ payables ratio is also called days purchases outstanding.
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Definitions of terms begining
with the same letter as "Days’ payables ratio"
:
Days’ payables ratio (See Chapter 11 of the Vernimmen)
The days’ payables ratio measures the average payment terms granted to the company by its suppliers (or the average actual payment period). It is calculated by dividing accounts payable by average daily purchases (VAT inclusive) or by sales, if the amount of purchases is not shown in the accounts. Days’ payables ratio is also called days purchases outstanding.
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