Days Payable Outstanding

on . Posted in Project Management Engineering

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.

 

Days Payable Outstanding Formula

\(\large{ DPO =  \frac{ AP \; n }{ COGS }  }\) 
Symbol
\(\large{ DPO }\) = days payable outstanding
\(\large{ AP }\) = accounts payable
\(\large{ COGS }\) = cost of goods sold
\(\large{ n }\) = number of days

 

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