Days Payable Outstanding (DPO)
Days Payable Outstanding (DPO) is a financial metric that measures how long a company takes to pay its bills to suppliers and creditors. It is calculated by dividing the total accounts payable by the average daily cost of goods sold. This measures the number of days it takes for a company to pay its accounts payable. A higher DPO indicates that the company is taking longer to pay its debts, which could be a sign of financial stability or a bargaining power with its suppliers. A lower DPO value, on the other hand, implies that the company is paying its debts more quickly, which could be a sign of financial weakness or that the company has fewer bargaining powers with its suppliers.
Additional Details
| Metric Name |
Type |
Default Period Type |
| dpo |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
days |