Accounts payable days, also known as Days Payable Outstanding (DPO), is a financial ratio that indicates the average time in days a company takes to pay its suppliers for purchases on credit.It is calculated by dividing accounts payable by average daily cost of sales.Average daily cost of sales is calculated by dividing total cost of goods sold by the number of days in period, typically representing the total number of days in the year or quarter.
Learn Accounts Payable Days with interactive examples and practice exercises in our Performance Metrics module.
This interactive learning module helps you understand Accounts Payable Days through hands-on practice and real-world examples.