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Finance KPIs
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Days Payables Outstanding (DPO)

Production Schedule Adherence

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Category:  
Strategic

Measures the average number of days it takes for a company to pay its suppliers.

What it Measures ?

How many days we take to pay our suppliers.

Relevant StakeHolders 

Procurement, Finance Team

Why it Matters ?

Measures payment efficiency to suppliers.

In-depth Use Case / Real-world Example

DPO is calculated by dividing accounts payable by COGS, then multiplying by the number of days in the period. If a company has ₹150,000 in payables and ₹1,000,000 in COGS, DPO is 55 days. A higher DPO means a company is taking longer to pay its suppliers, which could indicate better cash management or potential supplier relationship issues.

KPI Definition

Business Value

Movement Direction

Sample Formula

(Accounts Payable / COGS) * Number of Days

Should Aim For
1
2
3
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