DAYS IN ACCOUNTS PAYABLE | |||||||||
Definition | |||||||||
The ratio indicates how many days of sales are needed to pay suppliers. | |||||||||
Calculation rule | |||||||||
[Accounts payable / Net sales] x 360 | |||||||||
Comment | |||||||||
Shareholder equity is used in many performance ratios such as Return on Equity etc. Meanwhile the price to book ratio (price divided by book value) is sometimes used as a criteria for investment. | |||||||||
Reference | |||||||||
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