|
Trade Credit
as % of Current Liabilities
|
Trade
Creditors x 100 |
|
Current Liabilities (CL) |
Benchmark: 45%
Credit given by suppliers as
a percentage of short term debts, showing what proportion of short term lending
the company receives from its suppliers.
Relate this ratio to current
ratio and quick ratio to give an indication of the credit risk (see also trade
credit ratios and gearing %).
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