What is Accounts Payable Turnover?
A definition of Accounts Payable Turnover
“Accounts payable turnover is a financial ratio that measures how quickly a company pays off its suppliers during a period. It helps assess the company’s short-term liquidity and efficiency in managing its payables.”

Business Glossary > What is Accounts Payable Turnover?
Examples of Accounts Payable Turnover in a Sentence:
The accounts payable turnover ratio helps assess financial health.
Companies with high accounts payable turnover may have more favorable credit terms.
Improving accounts payable turnover can enhance cash flow management.
Why is Accounts Payable Turnover Important in Business?
Accounts payable turnover is crucial for understanding a company’s liquidity and operational efficiency. A high ratio indicates effective management of supplier payments, which is essential for maintaining good vendor relationships and optimizing cash flow.
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Associated Terms
Here are some associated business terms and synonyms for “Accounts Payable Turnover”:
- Payables Turnover Ratio
- AP Turnover
- Creditors Turnover
Walmart Accounts Payable Turnover
Walmart, known for its extensive supplier network, maintains a strong accounts payable turnover ratio by effectively managing payment terms and maintaining liquidity. This efficiency helps Walmart streamline its supply chain and sustain competitive pricing.
Final Notes on Accounts Payable Turnover
Businesses analyzing accounts payable turnover should consider industry benchmarks and operational size, as these can affect the interpretation of the ratio. A balance between turnover rate and vendor relationships is critical for sustained business success.
This has been a definition of Accounts Payable Turnover meaning.
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