SPONSORED

Days of Payables Outstanding Calculator

LAST UPDATE: August 24th, 2018

Calculator

What is Days of Payables Outstanding?

Days of Payable Outstanding is a measurement of how long a company takes to pay its suppliers.

It can also be used as a measurement of how long a company holds onto its cash.

Formula

Days of Payables Outstanding = Accounts Payable / (Cost of Sales / 365)

Example

A company has accounts payable of $3,200 and cost of sales of $13,000.

Days of Payables Outstanding = $3,200 / ($13,000 / 365) = $3,200 / $35.616 = 89.85

Therefore, this company has 89.9 days of payables outstanding.

Sources and more resources