Financial Statement Analysis Magazine Section

Ratio - Accounts Payable to Sales

Accounts payable to sales ratioACCOUNTS PAYABLE TO SALES (%):                                                                           onlinecalculator iconOnline 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.

The formula:

Accounts Payables to Sales Ratio = [Accounts Payables / Net Sales ] x 100 uses cookies to improve your online experience. These cookies are necessary for the website to function and cannot be switched off in our systems. Without this type of technology, our services will not work optimally or won't be able to provide certain features and functionalities. To find out more about our policy please click "More information". If you do not agree click "Decline". By clicking "Accept" below, you will be giving your consent to our cookie policy.
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