payables turnover

payables turnover definition - finance
The sum of the cost of goods sold and the change in inventory, divided by average accounts payable. The resulting ratio shows the number of times on average that a companyÂ’s accounts payable turns over, and it shows the relative size of accounts payable.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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