Payables
Also called: trade payables, creditors, accounts payable
Money a business owes its suppliers for goods and services bought on credit.
Payables are a current liability. Suppliers who allow time to pay are in effect lending the business money, which reduces the cash tied up in working capital.
Example
Payables of ₹28 crore against yearly cost of goods sold of ₹255.5 crore mean suppliers are paid after about 40 days on average.
Learn more in these lessons
- Working capital, inventory and receivablesWhat is working capital and why does it matter?
- Working capital efficiencyHow can working capital trends warn you about a company's health?
Related terms
Spotted a mistake or something unclear? Report it by email. Here is how corrections work.