As we know debt the enemy of you and the companies that you buy. It is very important to make sure that the companies you buy have an accounts payable turnover ratio that is higher than their competition because it shows they have an advantage in the market. A smart investor though should try to find out WHY the company he or she is buying has an edge with something like this ratio because we want to be sure the good news CONTINUES and the ratio stays high. The thing too look for is a competitive edge that the company has which allows it to have a high and profitable turnover while keeping debts low and creditors happy. Competitive edges when it comes to inventory should be analyzed especially when it comes to PRICE competition in the market. If a company is able to sell things cheaper than its competition it is a general sign that their inventory will turn over quickly and debts will be kept at a minimum for the long run. The next thing too look at is quality because if the company has exceptional quality it will tend to make the turnover ratio higher since there is a demand for quality in goods bought. The last thing to consider is PRESENTATION because with many companies it’s all about HOW goods or services being sold to customers. An example of presentation increasing the accounts payable turnover ratio would be stores presenting customers with cheaper than usual and popular items as soon as they enter the store. This will make them want to buy the cheap items at the front but also get them in the mood to buy more things in the store they otherwise would not.