Result
Turnover, times per period
—
Your inputs are stored in this browser, so everything is still here next time. Nothing is sent to a server.
This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Accounts payable turnover = COGS for the period ÷ accounts payable. The number shows how many times per period the company on average accumulates and pays off its debt to suppliers.
This is the same underlying figure as DPO (Days Payable Outstanding), just expressed in times per period instead of days: turnover = days in period ÷ DPO. High turnover (= low DPO) means fast settlements with suppliers, low turnover means the company holds onto cash longer by delaying payment.
Too-low turnover can signal not just comfortable supplier terms but also solvency trouble — look at this metric together with DSO and Cash Conversion Cycle, not in isolation.