The accounts payable turnover ratio also has its weakness like it does not incorporate factors like fluctuating purchase during some periods of the year or changes in the credit terms of the suppliers. It also fails to give fresh information about the organisation’s bargaining power and relationship with the suppliers. Further, it is possible to observe a high ratio due to the take of less credit rather than proper payables management. : Thus, it should be used complementarily with other financial indicators for a more profound analysis.
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