Days Sales Payable (DSP) is an important financial metric that reflects the average number of days it takes a business to pay its creditors. This calculation reveals how quickly a company pays back suppliers, vendors, and any other accounts payable liabilities. To calculate DSP, you need to divide the total amount owed to creditors by the total sales over a specific period. The end result will tell you the average number of days it takes for your business to settle accounts payable obligations. Knowing this info can help you develop better strategies for managing cash flow and mitigating risk.