The days' payable shows how long,on average,a company takes to pay its accounts payable.

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The days' payable is a ratio that measures how long it takes for a company to pay its accounts payable, which are the amounts owed to vendors and suppliers for goods and services purchased on credit. This ratio is calculated by dividing the accounts payable balance by the average daily cost of goods sold. A higher days' payable indicates that the company is taking longer to pay its bills and may be managing its working capital effectively, while a lower days' payable suggests that the company is paying its bills too quickly and may be facing cash flow challenges.

The Days' Payable Shows How Long,on Average,a Company Takes to Pay