AP Turnover Model
Accounts payable turnover is a simple metric with something important to say. Calculated by dividing all purchases from suppliers over a measurement period by the average time for accounts payable over that same period, this ratio tells you how quickly your company is settling its debts.
If the ratio is falling, it indicates you’re paying faster, possibly because of smaller payment windows or early repayment incentives. If the ratio is climbing, it indicates you’re paying slower, potentially because of worsening financial conditions. No matter which way the ratio is trending, however, you need to track it closely and consistently.
That’s a lot easier to do with data-driven dashboards from insightsoftware. Download the free asset below to learn what an accounts payable turnover dashboard looks like. It’s an interactive asset, meaning you can change the values in blue to observe how the whole document adapts.
This dashboard combines clear design, intuitive features, and widespread accessibility to ensure every decision is informed by data. With insightsoftware ERP reporting solutions you can enable automatic updates to this dashboard allowing tracking of accounts payable turnover to be simpler than ever.Download Now