calculate_payables_turnover
Calculate payables turnover: purchases (or COGS) divided by average accounts payable — how many times a company pays its suppliers in a period. Formula: Payables Turnover = COGS or Purchases / Average Accounts Payable. WHEN TO USE: Use to assess supplier payment speed and working-capital management; lower turnover means the company stretches supplier credit longer. WHEN NOT TO USE: Do NOT interpret low payables turnover as inefficiency without context — it can be a deliberate financing strategy. BEHAVIOUR: pure deterministic calculation — no side effects, no network or storage access; idempotent and non-destructive; identical inputs always produce identical outputs. Division by zero or non-finite inputs returns an explicit error instead of a number. RETURNS: JSON object { payables_turnover: number (e.g. 7.5 = 7.5x per year), inputs }. PARAMETERS: cogs_or_purchases (required): Cost of goods sold or total purchases for the period, e.g. 600000. Must be >= 0. begin_payables (required): Accounts payable at period start, e.g. 70000. Must be >= 0. end_payables (required): Accounts payable at period end, e.g. 90000. Must be >= 0.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| end_payables | Yes | Accounts payable at period end, e.g. 90000. Must be >= 0. | |
| begin_payables | Yes | Accounts payable at period start, e.g. 70000. Must be >= 0. | |
| cogs_or_purchases | Yes | Cost of goods sold or total purchases for the period, e.g. 600000. Must be >= 0. |