Dpo (Days Payable Outstanding) DSO (Days Sales Outstanding) is a measurement of how long it takes a business to pay their suppliers on an average. It’s calculated by taking the number of days in a period and dividing it by the company’s net purchases during that same period – then multiplying the result by 365. A low Dpo DSO reading shows the company pays its bills faster, while a higher number implies slower payments. It’s a valuable metric for both businesses and creditors; companies can use it to track performance over time, while creditors can use it to determine how likely they are to receive payment on time. So keep an eye on your Dpo DSO, or else you might find yourself in hot water!