Days Payable Outstanding - DPO

What Does Days Payable Outstanding - DPO Mean?
A company's average payable period. Calculated as:

Notice that the formula may also be written as: accounts payable / (cost of sales/number of days).

Investopedia explains Days Payable Outstanding - DPO
DPO is an indicator of how long a company is taking to pay its trade creditors. DPO is typically looked at either quarterly or yearly (90 or 365 days).

Related Terms

Accounts Payable
Accounts Receivable
Days Sales Of Inventory - DSI
Days Sales Outstanding - DSO
More Related Terms

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