Average Days Payable

Average Days Payable

The average number of days it takes for a business to pay its bills. This is calculated by multiplying its payables turnover by 365. Companies aim to have a short average days payable because it indicates that necessary payments can be made relatively easily.
References in periodicals archive ?
Hanesbrands, for example, is piloting an SCF platform it built and expects to see an improvement of 40% in average days payable, says Donald Cook, treasurer of the Winston-Salem, N.
Although it varies by industry, the average days payable is 30-60 days.
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