The definition of Account Payable Days varies by company, industry, and tradition. Some companies’ definitions of Account Payable Days are simple and short, while others are more complex, with a long list of factors that determine when the number of days begins to count down.
Account payable days is typically used to measure how quickly a company pays its bills. The account payable days metric can also be used to measure how quickly a company pays its suppliers. There are numerous types of accounts payable, such as cash advances, credit card charges, or payroll.
Account payable days is often abbreviated “AP days.”