DPO

1.

Days Payables Outstanding.

A working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period.

For example: a company has an average of £50,000 of payables over a year in which the cost of goods sold was £400,000. The DPO is:

50,000/400,000*365 = 45.6

A higher number is perceived as better but a business need to maintain the goodwill of its suppliers and a shorter payment terms may be necessary.

Also known as creditor days.

2.

Data Protection Officer.

See also

• Accounts payable management
• Creditors
• DIO
• DSO
• General Data Protection Regulation
• Payables management