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Days Payable Outstanding - DPO
What does it mean?
A company's average payable period. Calculated as:
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Notice that the formula may also be written as: accounts payable / (cost of sales/number of days)
In Other Words...
DPO is an indicator of how long a company is taking to pay its trade creditors. DPO is typically looked at either quarterly or yearly (90 or 365 days).
Related Links
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Related Terms
Accounts Receivable | DSO
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