Accounts Payable Turnover Ratio Calculator

This Accounts Payable Turnover Ratio tool is used to calculate the average accounts payable for the period by adding the accounts payable balance at the beginning of the period from the accounts payable balance at the end of the period.

  

Results

Accounts Payable Turnover Ratio = Total PurchasesAverage accounts payable

Accounts Payable Turnover Ratio = 84

Accounts Payable Turnover Ratio = 2

  

Results

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

Accounts Payable Turnover Ratio = 2(4 + 8) / 2

Accounts Payable Turnover Ratio = 0.3

Formula To Calculate Accounts Payable Turnover Ratio :

The accounts payable turnover ratio is a liquidity ratio that shows a firm ability to pay off its accounts payable by comparing net credit purchases to the average accounts payable during a period.

In normal form,

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

In short form,

Accounts Payable Turnover Ratio = Total PurchasesAverage accounts payable

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