Days Payable Outstanding (DPO): Formula, Calculation & Example

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Tim Yoder, CPA from Fit Small Business discusses how to calculate and interpret the Days Payable Outstanding (DPO) metric for your business.

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Chapters
00:00 Intro
00:09 Days Payable Outstanding (DPO)
00:33 What Is the DPO Formula?
01:35 How To Calculate DPO / Step 1: Identify Inventory Purchased
01:52 Step 2: Calculate COGS
02:18 Step 3: Calculate Average A/P
03:16 Step 4: Get DPO
03:37 How To Interpret DPO
05:03 How To Generate Profit and Loss & Vendor Balance Reports in QuickBooks Online
06:15 Outro
  1. FitSmallBusiness
  2. Days payable outstanding
  3. Dpo calculation
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