Payables to operating expenses ratio

Payables to operating expenses ratio,

Definition of Payables to operating expenses ratio:

1. Expressed usually as weeks of operating expenses in terms of end-of-accounting-period accounts payable, it depends on how long the firm takes to pay its operating expenses after they have been recorded. Formula: End-of-accounting-period accounts payable ÷ Total operating expenses for the period (excluding cost of goods sold, depreciation, interest, taxes).