DAYS PAYABLE OUTSTANDING DPO
Days Payable Outstanding - DPO: translation
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).
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).