Average days I take to pay suppliers. The Days Payable Outstanding (DPO) Calculator takes accounts payable, cost of goods sold (or purchases) for the period, days in the period and returns days payable outstanding plus purchases per day. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Financial ratios are only useful in comparison: against last year, against a competitor, or against the benchmark for your industry. Take the figures from the same set of accounts, note whether they are yearly or monthly, and read each ratio alongside the others in its family. Use the worked example below to check the maths against your own figures.
How the Days Payable Outstanding (DPO) Calculator works
The average number of days you take to pay suppliers. Read it alongside DSO and DIO in the cash conversion cycle.
Worked example
With the example values (accounts payable of $70,000, cost of goods sold (or purchases) for the period of $800,000, days in the period of 365 days), the days payable outstanding is 32 days; purchases per day $2,191.78. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is days payable outstanding calculated?
DPO = accounts payable ÷ cost of goods sold × days in period.
Which figures do I need?
Accounts payable, cost of goods sold (or purchases) for the period, days in the period. Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
What is a good value for this ratio?
Benchmarks differ by industry, size and business model, so compare with companies like yours and with your own history. A ratio moving in the wrong direction for several periods matters more than any single number.
