Days Payable Outstanding - DPO
Definition of 'Days Payable Outstanding - DPO'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). |
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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). |
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