Accounts Payable Turnover (APT) is a financial ratio that indicates the speed with which a company pays off its suppliers.It is calculated by dividing the total cost of sales by the average accounts payable during a certain period.A higher APT ratio could suggest that the company pays its suppliers relatively quicker, which may be a sign of good credit terms with its suppliers.
Learn Accounts Payable Turnover with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Accounts Payable Turnover through hands-on practice and real-world examples.