What Is Creditors Turnover
In Essence, a Creditors Turnover Ratio Is a Measure of How Often a Particular Company Pays off Its Debts to Suppliers Within a Given Accounting Period. This...
In essence, a creditors turnover ratio is a measure of how often a particular company pays off its debts to suppliers within a given accounting period. This relates back to the more general term ‘credit turnover’ which simply means the number of total transactions made during a particular time frame.
What means creditors turnover?
In essence, a creditors turnover ratio is a measure of how often a particular company pays off its debts to suppliers within a given accounting period. This relates back to the more general term ‘credit turnover’ which simply means the number of total transactions made during a particular time frame.
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What is a high creditors turnover ratio?
When the turnover ratio is increasing, the company is paying off suppliers at a faster rate than in previous periods. An increasing ratio means the company has plenty of cash available to pay off its short-term debt in a timely manner.
Robert Thorne covers electric vehicle innovations, autonomous driving systems, global mobility trends, and automotive engineering developments.
