The Accounts Payable Turnover Ratio is a measure of how efficiently a business is managing its creditors. This key figure illustrates the number of times, on average, a company pays off its accounts payable debts in a given period. A high turnover ratio generally indicates that a firm is very efficient at reducing its accounts payable debt, while a low turnover ratio may signal that the business has trouble paying off its creditors. By monitoring this vital financial indicator, companies can gain valuable insights into their financial health and find areas where they need to improve.