Accounts payable turnover ratio (SM.Pay_Turn)

Accounts payable turnover ratio (SM.Pay_Turn) can be defined as Cost of Goods Sold divided by average accounts payable for current and previous periods. The accounts payable turnover ratio shows how efficient a company is at paying its suppliers and short-term debts.

It can be shown as- “Cost of goods sold (COGS) (SM.COGS) / Avg of Accounts Payable (SF.BS.AccountsPayable) of current and previous period “.