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Early Payments Ratio Days Payables Outstanding 51310 3 {{{keywords}}} {{{description}}}
AE131
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Latest revision as of 14:48, 10 June 2017
The Early Payments Ratio measures the amounts paid before payment was due and without discounts taken as a percentage of total payments.
Contents
Calculation
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where:
- Early Payments = Total amounts disbursed, in the reported period, before contractual payment terms expired and without taking early payment discounts
- Payments = Total amounts disbursed in the reported period
Unit of measure: %
Importance
Early payment without receiving discounts for early payment is not desired from an Asset Efficiency perspective. Reducing early payment occurrences will free-up cash.
Notes
This metric specifically excludes early payments made reduced by the contractual early payment discount.
Community Importance Rating: