Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 23)

Which financial ratio would best help determine if a business is managing its trade payables efficiently?
Current Ratio
Debt-to-Equity Ratio
Trade Payables Turnover Ratio
Gross Profit Margin

Explanation

The trade payables turnover ratio is specifically designed to assess how effectively a business manages its trade payables.

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