标题: Days of payables VS Days sales in A/P [打印本页] 作者: ramzes 时间: 2011-9-10 00:17 标题: Days of payables VS Days sales in A/P
Hi, guys. Your advice is needed again.
I'v got these two ratios:
1) Days of payables (ratio from financial statement analysis chapter; purchases used); and
2) Days sales in A/P (ratio from cf shenanigans chapter; COGS used)
Are these ratios simply taken from different sources written by different authors but are essentially the same, or should I distinguish between them on the exam?
Edited 1 time(s). Last edit at Thursday, September 1, 2011 at 02:32AM by Deimon.作者: anish 时间: 2011-9-10 00:21
Can you please post the exact formulas? Thanks.作者: malbec 时间: 2011-9-10 00:26
Sure!
days of payables = (accounts payable / purchases) * number of days
days sales in accounts payable = (accounts payable / COGS) * number of days作者: stockjaguar 时间: 2011-9-10 00:30
Deimon Wrote:
-------------------------------------------------------
> Sure!
>
> days of payables = (accounts payable / purchases)
> * number of days
>
> days sales in accounts payable = (accounts payable
> / COGS) * number of days
I think they are the same. Recall reading that sometimes COGS is used as proxy for purchases if purchase info is not available.作者: bolligerallstar 时间: 2011-9-10 00:35
Actually, come to think of it, I think I had the same question. However, I was able to decipher (don't remember exactly how because I am past that material right now) that:
Which means that the two formulas have different denominators. I had a hard time (and still do!) memorizing some of the formulas in these two volumes because the differences are so subtle.
C3Po -- I don't recall reading that COGS could be used as a proxy for purchases. It would be good if you can point us to the relevant material.作者: xilinx_altera 时间: 2011-9-10 00:39
@Oyster
You are correct. The formula you used is to detrmine purchases if you do not have that figure given. In either case COGS is a determinant. It makes sense that COGS could be used is it is a major component.
Look at reading 35 pg 326 top of the page.作者: NakedPuts2011 时间: 2011-9-10 00:44
Yes, I remember that "purchases" formula too. Different names of these ratios confused me however.
I could not find the ratio "Days sales in A/P" through quick googling. Instead I found several Days of payables definitions which used both purchases and cogs interchangeably.
So now I beleive that we should not distinguish between these measures.
