单词 | accounts payable (A/P) to sales ratio |
释义 | accounts payable (A/P) to sales ratioDefinition Relationship between unpaid suppliers' bills and the sales revenue in an accounting period. It is considered high if it approaches 1.0 and, in some industries, may be a sign that the firm is having liquidity problems. Formula: Total accounts payable ÷ Sales revenue. |
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