• The accounts payable turnover ratio is a measure of short-term liquidity used to quantify the speed at which a company pays its suppliers.

  • Accounts payable turnover shows how many times a company repays its accounts payable during a period.
  • Ideally, the company wants to generate enough income to pay off its accounts payable quickly, but not so quickly that the company misses out on opportunities because they could use that money to invest in other endeavors.