Formula
to calculate payment period:
Payment
Period = (365 days x supplies payable) / inventory.
Payment
period definition and explanation:
The
payment period indicates the average period for paying
debts related to inventory purchases.
The payment period ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The payment period ratio is listed in our efficiency
ratios.
The payment period and other ratios are key
to understanding financial statements. Our
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Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
The payment period
may be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
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accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
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debt-to-equity ratios with formulas, calculations,
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