Glossary
Glossary
Glossary
Days Payable Outstanding (DPO)
Days Payable Outstanding (DPO)
Definition
The average number of days it takes a company to pay its suppliers. It is calculated by dividing accounts payable by the cost of goods sold, then multiplying by the number of days in the period. A higher DPO indicates a company is taking longer to pay its bills.
The average number of days it takes a company to pay its suppliers. It is calculated by dividing accounts payable by the cost of goods sold, then multiplying by the number of days in the period. A higher DPO indicates a company is taking longer to pay its bills.
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