Skip to main content

 

Days Payable Outstanding Formula

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

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. 

Piping Designer Logo 1