DPO
Finance
DPO (Days Payables Outstanding)
Days Payables Outstanding
Average number of days a company takes to pay suppliers.
Examples
- 01The company pays its suppliers after an average of 52 days, giving a DPO of 52.
- 02The finance review shows DPO by supplier group, which helps negotiate payment terms in line with industry norms.
- 03When DPO is raised too far, some small suppliers struggle, so purchasing balances payment terms with supply risk.