OpenReference

The average number of days the company takes to pay its invoices.

Calculation

Days Payables Outstanding
=	Accounts Payable   × 365 days Cost of Goods Sold

where:

• Accounts Payable = Average Accounts Payable (= the average of beginning and year-end payables)
• Cost of Goods Sold = Annual Cost of Goods Sold

Unit of measure = Days (Calendar Days)

Community Importance Rating:

5.00

(one vote)

Hierarchy

ID	Name	Level	x
AE1	Cash Conversion Cycle	1	AE1
AE13	Days Payables Outstanding	2	AE13
AE131	Early Payments Ratio	3	AE131
AE132	On-time Payments Ratio	3	AE132
AE133	Late Payments Ratio	3	AE133
AE134	Duplicate Payments Ratio	3	AE134

Process(es)

ID	Name	Level	x
S006	Negotiate	3	S006
S1	Source-to-Replenish	2	S1
S2	Source-to-Order	2	S2
S3	Source-to-Engineering-Order	2	S3

Term(s)

ID	Name	Clear	x
AP	Accounts Payable		AP

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