Generating an accounts payable turnover ratio

The accounts payable turnover ratio is a financial measure that indicates how many times a business can pay off the balance of its purchases over a given length of time. A business that has a higher accounts payable turnover ratio indicates that the business has a higher liquidity value (the availability of liquid assets, such as cash) than a business with a lower accounts payable turnover. Businesses with high liquidity are more attractive to creditors, as well as vendors.

This recipe demonstrates how to calculate the accounts payable turnover ratio for a business.

Getting ready

To prepare for this recipe, do the following:

1. Open Power BI Desktop.
2. Use an Enter Data query to create...