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Days Payable Outstanding (DPO)

Definition of this KPI:
Days Payable Outstanding (DPO) measures the average number of days a company takes to pay its suppliers. It indicates how well a company is managing its outgoing payments and cash flow related to accounts payable.


  • This KPI can be calculated as: (Accounts Payable / Cost of Goods Sold) × Number of Days in the Period
  • The KPI will be measured as: time_(e.g._years,_minutes)
  • How to interpret the KPI: higher_is_better
  • The strategic objective to measure with this KPI: Optimize cash flow by extending payment terms with suppliers without damaging relationships, thereby maintaining liquidity and improving working capital.
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