creditors ratio

creditors ratio

an accounting measure of a firm's average period of CREDIT taken from suppliers, which expresses the amount owed by the firm to period-end CREDITORS as a ratio of its average daily purchases (or sales). The resulting figure shows how many days on average the firm took to pay its creditors. Compare DEBTORS RATIO.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson