Late Payments Ratio measures the amounts paid after payment was due, as a percentage of total payments. The amounts paid include penalties that may have been applied for late payment.
|Late Payments Ratio
Unit of measure: %
Late payments may appear desirable from an Asset Efficiency perspective. But proponents of early/on-time payment point out that experience shows that financially healthy suppliers are better suppliers. Late payment may also have an impact on costs as late payment fees and price increases may result from consistent late payment.Community Importance Rating: