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
  
Account Payable

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