what is the accounts payable turnover ratio 
the accounts payable turnover ratio is a short term liquidity measure used to quantify the rate at which a company pays off its suppliers it shows how many times a company pays off its accounts payable during a particular period accounts payable is short term debt that a company owes to its suppliers and creditors the accounts payable turnover ratio can reveal how efficient a company is at paying what it owes in the course of a year investopedia michela buttignolformula and calculation of the ap turnover ratioap turnover tsp bap eap 2 where ap accounts payable tsp total supply purchases bap beginning accounts payable eap ending accounts payable begin aligned text ap turnover frac text tsp text bap eap 2 textbf where text ap accounts payable text tsp total supply purchases text bap beginning accounts payable text eap ending accounts payable end aligned ap turnover bap eap 2tsp where ap accounts payabletsp total supply purchasesbap beginning accounts payableeap ending accounts payable calculate the average accounts payable for the period by adding the accounts payable balance at the beginning of the period to the balance at the end of the period divide the result by two then divide the total supplier purchases for the period by the average accounts payable for the period 