Days Payable Outstanding – An Important AP Metric

February 10, 2014

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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...

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