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). Investopedia Says:
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 |