Boost Your Business: Improve Average Payment Period
The given formula can measure the average payable period with the application of the following steps. Let’s analyze the concept from suppliers’ perspective as they are primary stakeholders in the average payment period of the business. Again, there are two sides of the equation where profitability and liquidity act in a reverse direction. An average collection period of 30 days indicates that the company typically collects its accounts receivable within a 30-day timeframe. Ready to transform your AP? The average payment period...