Payables turnover measures the relative size of accounts payable.

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Payables turnover is a ratio that measures the frequency with which a company pays its accounts payable. It is calculated as cost of goods sold divided by the average accounts payable balance during the period. This ratio provides an indication of how quickly a company is paying its suppliers, and a higher turnover implies a shorter time period for paying off debts, which may be seen as favorable by creditors. Thus, payables turnover does measure the relative size of accounts payable in relation to a company's purchases.

Payables Turnover Measures the Relative Size of Accounts Payable