accounts payable turnover

Definition

The average duration an item remains in accounts payable, equal to total purchases divided by average accounts payable. A change over time in the accounts payable turnover means that a company is paying off their suppliers either faster or slower than they were previously.
Browse Definitions 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
accounts payable subsidiary ledger accounts receivable