Average Payment Period in Financial Accounting Formulas

Average Payment Period provides insight into a company’s efficiency in managing its accounts payable and its relationships with suppliers. And is denoted by APP.

Formulas to find Average Payment Period in Financial Accounting

fxAverage Payment PeriodGo

List of variables in Financial Accounting formulas

fx Average Accounts Payable Go

fx Credit Purchases Go

fx Number of Days in Period Go

FAQ

What is the Average Payment Period?

Average Payment Period provides insight into a company’s efficiency in managing its accounts payable and its relationships with suppliers.

Can the Average Payment Period be negative?

{YesorNo}, the Average Payment Period, measured in {OutputVariableMeasurementName} {CanorCannot} be negative.

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