Days Payable Outstanding (DPO)

Knowledge Center

Summary, forum, best practices, expert tips and information sources.

10 items • 25.216 visits



What is Days Payable Outstanding (DPO)? Meaning.

Days Payable Outstanding (DPO)

Days Payable Outstanding (DPO) is a financial performance ratio, which indicates how long a company is taking on average to pay its trade creditors.

Although the average DPO varies from one industry and region to another, a low DPO number shows that a company is paying its liabilities to suppliers quickly, whereas a high DPO number indicates that a company is receiving longer (and better) credit terms from its suppliers.

However, it should be noted that a high DPO number may also be a sign of liquidity problems of a company and therefore should always be challenged.

Calculation of Days Payable Outstanding. Formula

The DPO ratio is calculated as follows:

DPO = (Accounts Payable / Cost of Goods Sold in Accounting Period) x Days in Accounting Period


In this formula, the days in accounting period are typically 90 days for quarterly statements or 365 days for yearly statements.

DPO forms one part of the Cash Conversion Cycle, which represents the length of time that it takes a company to convert resource inputs into cash flows.

Days Payable Outstanding (DPO) is also known as Days Purchase Outstanding.

Special Interest Group

Days Payable Outstanding Special Interest Group.

Special Interest Group
Special Interest Group (11 members)


Forum about Days Payable Outstanding. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.

🔥 Quotes on Paying Creditors. Quotations
Hi, do you know of a remarkable, humorous quote by a famous person or a proverb related to how creditors are or should be paid?Please enter a reaction to share it for other people to enjoy! "If I o...
Comments1 comments

Start a new topic

Start a new topic about Days Payable Outstanding

Best Practices

The best, top-rated topics about Days Payable Outstanding. Here you will find the most valuable ideas and practical suggestions.

Expert Tips

Advanced insights about Days Payable Outstanding. Here you will find professional advices by experts.

Information Sources

Various sources of information regarding Days Payable Outstanding. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Financial Statement Analysis | Ratio Analysis

Ratio Analysis, Finanical Statement Analysis
This presentation provides insights in Financial statement and ratio analysis, and includes the following sectios: 1. F...

Research Links

Jump to further research sources regarding Days Payable Outstanding.













Special Interest Group

Special Interest Group

Do you know a lot about Days Payable Outstanding? Become our SIG Leader and gain worldwide recognition as an expert.


Return to Management Hub: Finance & Investing

More on Management  |  Return to Management Dictionary


This ends our Days Payable Outstanding (DPO) summary and forum.

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2023 12manage - The Executive Fast Track. V16.3 - Last updated: 27-9-2023. All names of their owners.

12manage is looking for BA/MBA students. More info.