Days Payable Outstanding - DPO

Filed Under »
Dictionary Says

Definition of 'Days Payable Outstanding - DPO'

A company's average payable period. Calculated as:

Days Payable Outstanding (DPO)


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

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 Definitions

  • Accounts Receivable - AR

    Money owed by customers (individuals or corporations) to another entity in exchange for goods or services that have been delivered or used, but not yet paid for. Receivables usually come ...
    Read More »
  • Days Sales Outstanding - DSO

    A measure of the average number of days that a company takes to collect revenue after a sale has been made. A low DSO number means that it takes a company fewer days to collect its ...
    Read More »
  • Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable entry is found on a balance sheet under the heading current ...
    Read More »
    • Days Sales Of Inventory - DSI

      A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory (including goods that are work in progress, if ...
      Read More »
    • After-Tax Payable Period

      The average period that a company has between receiving goods and paying its suppliers for the goods, utilizing after-tax accounts payable and cost of sales values. The value is ...
      Read More »

Articles Of Interest

Partner Links