ACCOUNTS PAYABLE TO SALES (%): Online Accounts Payable to Sales Ratio Calculator
This ratio is obtained by dividing the 'Accounts Payables' of a company by its 'Annual Net Sales'. This ratio gives you an indication as to how much of their suppliers money does this company use in order to fund its Sales. Higher the ratio means that the company is using its suppliers as a source of cheap financing. The working capital of such companies could be funded by their suppliers.
Accounts Payables to Sales Ratio = [Accounts Payables / Net Sales ] x 100