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Days Payable Outstanding - DPO

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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).

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