What is Days Payable Outstanding (DPO)?
DPO measures how many days a company takes to pay its suppliers — longer DPO means the company holds onto cash longer.
Formula
DPO = (Accounts Payable ÷ COGS) × 365
How to Interpret
Higher DPO is generally favorable (free financing from suppliers), but excessively high DPO may indicate cash flow problems.
Typical Ranges
30-60 days for most industries. Retailers may be higher.
Find Stocks Using This Metric
Use the Equiscale Stock Screener to filter Indian stocks by Days Payable Outstanding.
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