Skip to main content

Current Accounts Payable

What is Current Accounts Payable (CAP)?

Current accounts payable (CAP) is a metric that works alongside current accounts receivable by providing information on your company’s debts. Accounts payable are current liabilities – your business will eventually need to pay its debts, which will result in cash outflow.

By taking a close look at CAP, you’ll be able to determine:

  • How much your business owes (and whether or not it can pay its debts)
  • Your company’s credit dependence
  • The priority of your business’s debts based on maturity dates

Related terms

3 Way Match
3-way matching refers to a three-step process of matching three key documents before processing a payment to a supplier.
30-Day and 13-Week Operating Cash Burn
30-day and 13-week operating cash burn are also known as the “burn rate.” These are the rates at which a business consumes its cash reserves when it isn’t bringing in profit. 
Accounts Payable Automation
Accounts payable automation (AP Automation) refers to the use of technology and software solutions to streamline and optimize the accounts payable process within an organization.
Accounts Payable Days
Accounts Payable Days (AP Days), also referred to as Days Payable Outstanding (DPO), is a financial ratio that measures the average time a company takes to pay its suppliers or vendors for credit purchases.
Accounts Payable Turnover
Accounts payable turnover explains how many times a business pays its creditors in a set timespan. Companies can use this metric to measure their short-term liquidity.
Accounts Receivable Turnover
The accounts receivable turnover ratio (or debtor turnover ratio) allows businesses to evaluate their debt collection efficiency.