Calculate the accounts payable turnover ratio, an efficiency ratio that measures how quickly a company pays its suppliers.

The accounts payable turnover ratio indicates how many times, on average, a company pays off its accounts payable during a specific period. A higher turnover ratio is generally favorable, as it suggests that the company is efficiently managing its payments to suppliers.

The formula is as follows:

\[\text{Accounts Payable Turnover Ratio} = \text{Cost of Goods Sold} / \text{Average Accounts Payable}\]

Also known as: payables efficiency, AP turnover.

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Calculate the Accounts Payables Turnover Ratio in Python

The Accounts Payables Turnover Ratio is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_accounts_payables_turnover_ratio as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

ap_turnover_ratios = toolkit.ratios.get_accounts_payables_turnover_ratio()

Which returns:

  2021 2022 2023 2024 2025
AAPL 4.3887 3.7609 3.3795 3.1975 3.1834
TSLA 5.0034 4.795 5.33 5.9647 6.0153

Parameters

get_accounts_payables_turnover_ratio accepts the following parameters:

  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Asset Turnover Ratio Inventory Turnover Ratio Days of Inventory Outstanding Days of Sales Outstanding Operating Cycle Days of Accounts Payable Outstanding Cash Conversion Cycle Cash Conversion Efficiency Receivables Turnover SGA to Revenue Ratio Fixed Asset Turnover Operating Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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