Accounts Payable Turnover Formula

Accounts Payable Turnover in Days The accounts payable turnover in days shows the average number of days that a payable remains unpaid. To calculate the accounts payable turnover in days, simply divide 365 days by the payable turnover ratio. Payable turnover in days = 365 / Payable turnover ratio

Accounts Payable Turnover in Days = 365 / Accounts Payable Turnover Ratio Company A reports total credit purchases of $120,000 before purchase return of $10,000 for the year ended June 30, 2021. The Accounts Payable balance at the beginning of the year was $12,000 and the balance at the closing of the year was $25,000.

The accounts receivable turnover in days shows the average number of days that it takes a customer to pay the company for sales on credit. The formula for the accounts receivable turnover in days is as follows:

Accounts Payable Turnover Formula