Accounts Payables Turnover Ratio
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.
Accounts Payables Turnover Ratio in Python
get_accounts_payables_turnover_ratio is part of 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.