Financial Measure of the Performance ROFL captures the amount of ROE that can be attributed to financial leverage In Amazon's case,a significant portion of the financial leverage in 2009 and 2010 came from accounts payable rather than debt. ■ An important ratio that defines financial leverage is accounts payable turnover (APT). s A small APT indicates that Amazon was able to use the money it owed suppliers to finance a considerable fraction of its operations. A low value of APT helps Amazon improve its financial performance. Cost of goods sold APT= Accounts payable SEIEE AU406 3-6+ - SEIEE AU406  ROFL captures the amount of ROE that can be attributed to financial leverage  In Amazon’s case, a significant portion of the financial leverage in 2009 and 2010 came from accounts payable rather than debt.  An important ratio that defines financial leverage is accounts payable turnover (APT).  A small APT indicates that Amazon was able to use the money it owed suppliers to finance a considerable fraction of its operations.  A low value of APT helps Amazon improve its financial performance. 3-6 Financial Measure of the Performance