Average Accounts Payable (AAP) is a measure of a company’s financial performance in terms of its ability to pay its bills. In other words, it tells you how long it takes for a company to pay off all its liabilities. The higher the number, the slower the company is at paying its bills, and the more risk it poses to potential creditors. By monitoring AAP closely, companies can identify areas where they may need to streamline their processes or increase their liquidity to ensure they remain financially secure.