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.C., apparel maker with $4.6 billion in 2011 revenue.

Supplier finance advantage: companies see payables strategies as a way to generate returns as well as to support their suppliers

Although it varies by industry, the average days payable is 30-60 days.

Getting the cash to flow your way

However, the average days payables for Top SCM companies is 55 days vs.

Does supply chain excellence really: the short answer is a resounding yes! New research findings show that the top supply chain management companies significantly outperform their competitors across most financial measures. This article offers insights into those financial gains that differentiate the leaders from their rivals--and offers tips on how to get your top management interested in investing for supply chains excellence