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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.

Calculation

Late Payments Ratio
=	Late Payments   × 100 % Payments

where:

• Late Payments = Total amounts paid, in the reported period, after payment was contractually due
• Payments = Total amounts disbursed in the reported period

Unit of measure: %

Notes

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.

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Hierarchy

ID	Name	Level	x
AE13	Days Payables Outstanding	2	AE13
AE133	Late Payments Ratio	3	AE133

Term(s)

ID	Name	Clear	x
AP	Accounts Payable		AP

Late Payments Ratio Days Payables Outstanding 51330 3 {{{keywords}}} {{{description}}}

Accounts Payable