Days Payable Outstanding (DPO
Days Payable Outstanding (DPO) measures the average number of days a company takes to pay its suppliers and vendors.
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📐 Formula
💡 Practical Example
$45,000 Accounts Payable with $300,000 annual COGS (365 days): DPO = × 365 = 54.8 Days. Accounts Payable Turnover Ratio = $300,000 / $45,000 = 6.67 turns per year.
📖 About Days Payable Outstanding (DPO
Days Payable Outstanding (DPO) measures the average number of days a company takes to pay its suppliers and vendors. Higher DPO retains cash longer, improving the Cash Conversion Cycle (CCC).
To use the Days Payable Outstanding (DPO) & Working Capital Calculator, enter your Ending Accounts Payable (), Cost of Goods Sold (COGS), Measurement Horizon Period. The calculator instantly computes Days Payable Outstanding (DPO), Accounts Payable Turnover Ratio and more. Results update in real time as you change any input — no submit button needed.
How to Use This Calculator
Enter your Ending Accounts Payable () (e.g. 45000 in ), Cost of Goods Sold (COGS) (e.g. 300000 in /yr), and Measurement Horizon Period — choose from Annual (365 Days), Quarterly (90 Days). Results update instantly as you type — adjust any value to compare scenarios.
The Formula
Days Payable Outstanding (DPO) = (Ending Accounts Payable ÷ COGS) × Measurement Days
Accounts Payable Turnover Ratio = COGS ÷ Ending Accounts Payable
Worked Example
45,000 Accounts Payable with 300,000 annual COGS (365 days):
DPO = 365 = 54.8 Days.
Accounts Payable Turnover Ratio = 300,000 / 45,000 = 6.67 turns per year.
Understanding Your Result
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