Credit Payment Period Wizard

 

The Creditor Payment Period measures the average time it takes you to pay your creditors. The Creditor Payment Period is a 'performance ratio', which means that it indicates the efficiency of a business. Efficiency and performance are linked, as efficient businesses are usually more profitable.

 

This ratio gives you one insight into your business. To determine the full financial performance of your business, you will also need to analyse your financial statements and calculate the other financial ratios. 

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Credit Payment Period Wizard

Creditor Payment Period = Creditors x 365/Cost of Sales

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Credit Payment Period:

 

Note: This information is provided for illustrative purposes only and is based on the accuracy of information provided. It does not constitute a contract. We are not recording and will not use the information quoted by you in our calculators unless it is being used as part of a product application.

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    Tips for finding figures

    • Creditors are Trade Creditors or Accounts Payable in your Current Liabilities on your Balance Sheet.
    • Cost of Sales are found in your Profit and Loss Account.

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