Days Payable Outstanding – An Important AP Metric

February 10, 2014


Days payable outstanding (DPO) is a key metric, indicating how many days on average an organization takes to settle its payables. It is used in working capital management. A formula to calculate DPO is: (accounts payable) / (cost of sales / days) where days is 90 (for the quarter) or 365 (for the year; some...

  Become A Member

Join IOFM today as a Professional, Business, or Enterprise member — or upgrade your Starter membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!

Join Today

Subscribe to our Newsletter

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500