The formula for calculating Trade Payables Turnover Ratio is :

Net Credit Purchases/Average Creditor Net Credit Purchases/Average trade payable Cash Purchases/Total Creditors None of the above

Net Credit Purchases/Average trade payable

Trade Payables Turnover ratio = Net Credit purchases/ Average trade payable, Where Average Trade Payable = (Opening Creditors and Bills Payable + Closing Creditors and Bills Payable)/2