Accounts Payable Days Calculation, or APD, is a financial metric used to measure the average number of days it takes a company to pay their creditors. It is a simple calculation that can be used in assessing a company’s effectiveness in managing their cash flow and liquidity. The formula for calculating APD is the amount of accounts payable divided by the total cost of sales multiplied by 365 days. For instance, if Company A has an accounts payable balance of $200,000 and its total cost of sales in a month is $2,000,000, then the Accounts Payable Days calculation would be: (200,000/2,000,000) * 365 = 91.3 days. By understanding this number, business owners and financiers are able to get a better sense of their cash flow management and assess their risk exposure.