abhishreshthaa
Abhijeet S
It converts the CTR into days.
Significance:
1. This ratio indicates promptness in payment of credit purchases.
2. Lower AVP signifies that the creditors are being paid promptly.
3. It enhances credit worthiness of the company.
4. A higher ratio indicates that the company is taking time in paying its creditors
Significance:
1. This ratio indicates promptness in payment of credit purchases.
2. Lower AVP signifies that the creditors are being paid promptly.
3. It enhances credit worthiness of the company.
4. A higher ratio indicates that the company is taking time in paying its creditors