Days Payables Outstanding (DPO) is a financial metric that measures a company’s effectiveness in managing its accounts payable. It is calculated by dividing the total amount of accounts payable by the total cost of goods sold, then multiplied by the number of days in the period. DPO can be used to measure the average number of days a company takes to pay its suppliers, creditors, and other short-term liabilities. It is an important indicator of a company’s liquidity, financial health, and operational efficiency. It also helps investors understand how efficiently a company is managing its working capital and accounts payable. A high DPO implies that a company is taking longer than average to pay its suppliers and creditors, which could be a sign of financial problems. A low DPO, on the other hand, suggests that a company is operating with high efficiency and is paying its creditors in a timely manner. Overall