OpenReference

The Early Payments Ratio measures the amounts paid before payment was due and without discounts taken as a percentage of total payments.

Calculation

Early Payments Ratio
=	Early Payments   × 100 % Payments

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.

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Hierarchy

ID	Name	Level	x
AE13	Days Payables Outstanding	2	AE13
AE131	Early Payments Ratio	3	AE131

Term(s)

ID	Name	Clear	x
AP	Accounts Payable		AP

Early Payments Ratio Days Payables Outstanding 51310 3 {{{keywords}}} {{{description}}}

Accounts Payable