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).

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).


Investment dictionary. . 2012.

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