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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

Current Ratio
Current ratio is a metric that makes it easier for businesses to understand their ability to deal with short-term liabilities.
Customer Acquisition Cost (CAC)
Customer Acquisition Cost (CAC) is the total amount of money a company spends to gain a new customer.
Customer Lifetime Value (CLV)
Customer lifetime value (CLV or CLTV) is a metric that estimates the total revenue a business can reasonably expect from a single customer account throughout the business relationship.
Daily and Weekly Aged Debtor Analysis
Accounts receivable aging is the process of calculating and comparing the debts your company is owed based on how long it takes creditors to pay them. This number is typically expressed in days or weeks.
Data Mining
Data mining is the process of uncovering patterns and extracting valuable information from large sets of data. It's like sifting through a gold mine of information to find hidden gems of insights.
Days Inventory Outstanding (DIO)
Days Inventory Outstanding (DIO) is a working capital management metric that measures the average number of days a company holds onto its inventory before selling it. In other words, it tells you how long it typically takes for your inventory to be converted into cash through sales.