The Early Payments Ratio measures the amounts paid before payment was due and without discounts taken as a percentage of total payments.
|Early Payments Ratio|
|| × 100 %
- 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: %
Early payment without receiving discounts for early payment is not desired from an Asset Efficiency perspective. Reducing early payment occurrences will free-up cash.
This metric specifically excludes early payments made reduced by the contractual early payment discount.
Community Importance Rating
|AE13||Days Payables Outstanding||2||AE13|
|AE131||Early Payments Ratio||3||AE131|