Payable Turnover & DPO

Payable turnover measures how quickly a company pays suppliers. Days payable outstanding (DPO) expresses the same rhythm in days of cost. Mathematically, the engine applies Turnover = COGS ÷ average payables | DPO = 365 ÷ turnover. Cost of goods of 450,000 against average payables of 50,000 turns over 9 times: DPO = 365 ÷ 9 = 40.6 days — the company holds supplier money about six weeks. Everything you enter stays in your browser, and the answer appears in the same units as your inputs the moment the figures are complete.

1. 1

   Step 1

   Fill in each input field with your own data.

2. 2

   Step 2

   The tool runs the formula Turnover = COGS ÷ average payables | DPO = 365 ÷ turnover on your figures.

3. 3

   Step 3

   Review the result displayed on screen.

4. 4

   Step 4

   Refine the inputs until the numbers fit your case.

• Using sales instead of COGS

• End-of-period payables

• Reading DPO in isolation