# How To Calculate Accounts Payable Turnover in Sageworks | Arithmix

Learn how to calculate accounts payable turnover in Sageworks with our step-by-step guide. Improve your financial analysis skills and gain a better understanding of your business's cash flow. Start optimizing your accounts payable turnover today.

Calculating accounts payable turnover is an important aspect of financial management for any business. It helps you understand how efficiently your company is paying its suppliers and vendors. In this article, we will discuss what accounts payable turnover is, when it is valuable to calculate it, and how to calculate it in Sageworks.

## What Is Accounts Payable Turnover?

Accounts payable turnover is a financial metric that measures how quickly a company pays its suppliers and vendors. It is calculated by dividing the total amount of purchases made on credit by the average accounts payable balance during a specific period. The result is the number of times a company pays off its accounts payable balance in a year.

For example, if a company has \$1,000,000 in purchases made on credit and an average accounts payable balance of \$200,000, the accounts payable turnover ratio would be 5. This means that the company pays off its accounts payable balance five times a year.

## When Is It Valuable To Calculate Accounts Payable Turnover?

Calculating accounts payable turnover is valuable for several reasons. First, it helps you understand how efficiently your company is managing its cash flow. A high accounts payable turnover ratio indicates that your company is paying its suppliers and vendors quickly, which can help you maintain good relationships with them.

Second, accounts payable turnover can help you identify potential cash flow problems. A low accounts payable turnover ratio may indicate that your company is taking too long to pay its suppliers and vendors, which can lead to late fees and strained relationships.

## How to Calculate Accounts Payable Turnover in Sageworks

Sageworks is a financial management software that can help you calculate accounts payable turnover. To calculate accounts payable turnover in Sageworks, follow these steps:

2. Select the financial statement you want to analyze.
3. Click on the "Accounts Payable" line item.
4. Divide the total amount of purchases made on credit by the average accounts payable balance during the period.
5. The result is the accounts payable turnover ratio.

By using Sageworks to calculate accounts payable turnover, you can quickly and easily analyze your company's financial performance and make informed decisions about how to manage your cash flow.

## How Do You Calculate Accounts Payable Turnover in Sageworks

Sageworks itself isn’t naturally geared towards letting you calculate complex metrics like Accounts Payable Turnover. As an alternative, teams typically use products like Arithmix to import data from Sageworks and build out dashboards.

## What is Arithmix?

Arithmix is the next generation spreadsheet - a collaborative, web-based platform for working with numbers that’s powerful yet easy to use. With Arithmix you can import data from systems like Sageworks, combine it with data from other systems, and create calculations like Accounts Payable Turnover.

In Arithmix, data is organized into Tables and referenced by name, not by cell location like a spreadsheet, simplifying calculation creation. Data and calculations can be shared with others and re-used like building blocks, vastly streamlining analysis, model building, and reporting in a highly scalable and easy to maintain platform. Data can be edited, categorized (by dimensions) and freely pivoted. Calculations are automatically copied across a dimension - eliminating copy and paste of formulas.