Payable days
AccountingHow long a company takes to pay its suppliers.
In plain terms
Supplier credit is interest-free funding. Longer is better, up to the point relationships strain.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Cash conversion cycle
AccountingInventory days plus receivable days minus payable days.
In plain terms
A lengthening cycle is often the first quantitative sign that business quality is slipping.