Cash flow & liquidity · Core

Days payable outstanding

Also called: DPO

ELI5

Average time payables remain outstanding under a stated calculation.

Used in conversation

“Compare days payable outstanding with the same cohort and period before drawing a conclusion.”

Pitch context

You will see “Days payable outstanding” in financial models, budgets, board packs and investor materials when the discussion reaches cash flow & liquidity.

Why it matters: In cash flow & liquidity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Connected terms

Sources & evidence · 4

Direct term-level sources and supporting source families.