if-a-companys-accounts-payable-turnover-ratio-is-10-while-the-industry-average-i

Question

If a company's accounts payable turnover ratio is 10, while the industry average is 7, what can be inferred about the company's efficiency?

Accepted Answer

The company is more efficient in paying off its debts compared to the industry average.

Answer

The company is less efficient in paying off its debts compared to the industry average.

Answer

The company is less profitable than the industry average.

Answer

The company has a higher amount of accounts payable than the industry average.