oboloo Glossary

A/P Turnover Ratio Formula

oboloo Glossary

A/P Turnover Ratio Formula

A/P turnover ratio is a financial term that represents the number of times a company uses its accounts payable for business purposes. This statistic is calculated as the average accounts payable divided by the average net sales. Accounts payable turnover ratio is also known as A/P days, and it’s a key indicator used to determine the sustainability of a business. A/P days are typically represented in years, months, and days.