Apple Accounts Payable vs Inventory Analysis

<div class='logoBackup' style='background:#000000;color: white;font-size:3em;;'>AAP</div>
AAPL -- USA Stock  

Buyout Trend

Apple financial indicator trend analysis is way more than just evaluating Apple prevailing accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Apple is a good investment. Please check the relationship between Apple Accounts Payable and its Inventory accounts. Please continue to Trending Equities.

Accounts Payable vs Inventory

Accounts Relationship

Accounts Payable vs Inventory

Significance: Very Strong Relationship

Accounts Payable diversification synergy
Overlapping area represents amount of trend that can be explained by analyzing historical patterns of Apple Accounts Payable account and Inventory

Correlation Coefficient

0.89
Relationship DirectionPositive 
Relationship StrengthStrong

Accounts Payable

An accounting item on the balance sheet that represents Apple obligation to pay off a short-term debt to its creditors. The accounts payable entry is usually reported under current liabilities. If accounts payable of Apple are not paid within the agreed terms, the payables are considered to be in default, which may trigger a penalty or interest payment, or the revocation of additional credit from the supplier. Accounts payable may also be considered a source of cash, since they represent funds being borrowed from suppliers. Given these cash flow considerations, suppliers have a natural inclination to push for shorter payment terms, while creditors want to lengthen the payment terms.

Inventory

A component of [Assets] representing the amount after valuation and reserves of inventory expected to be sold; or consumed within one year or operating cycle; if longer.