Days Payable Outstanding Formula |
| \( DPO \;=\; \dfrac{ AP \cdot n }{ COGS } \) |
| Symbol |
| \( DPO \) = days payable outstanding |
| \( AP \) = accounts payable |
| \( COGS \) = cost of goods sold |
| \( n \) = number of days |
Days payable outstanding, abbreviated as DPO, is the number of average days from when a company purchases inventory and materials until the supplier is paid.
