UPS has a Payables Turnover of 3.84 Payables turnover = Cost of revenue ÷ Accounts payable...

Question

Question

UPS has a Payables Turnover of 3.84 Payables turnover = Cost of revenue ÷ Accounts payable 19,930 ÷ 5,188 = 3.84 What does this mean/indicate?

Answer 1

Answer #1

Solution:

Payable turnover indicates the speed of the company that with which it pay off its accounts payables.

Payable turnover of 3.84 indicates that company make purchases 3.84 times in a years.

Answer 2

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