Payables Turnover
Free Payables Turnover calculator with clear step-by-step results.
About Payables Turnover
Payables turnover shows how often a company pays its suppliers in a year.
Formula
Formula
Payables turnover = purchases ÷ average payables
Worked example
With the default values below, Payables Turnover returns Payables Turnover of 5.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Annual credit purchasesminimum 0 $
- 400,000 $
- Average accounts payableminimum 0 $
- 80,000 $
Results
- Payables Turnover
- 5.00
- Days Payable Outstanding
- 73.0
- Turns Per Year
- 5.00
Step by step
- 1Values used
- 2Formula
- 3Payables Turnover= 5.00
- 4Days Payable Outstanding= 73.0
- 5Turns Per Year= 5.00
Assumptions and limits
- The result is derived only from the 2 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax or fees or charges into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How does this calculator work?
Payables turnover shows how often a company pays its suppliers in a year.
Why does this matter?
Slower payment improves cash flow but can strain supplier relations.