Calculate the days payables outstanding, an efficiency ratio that measures the number of days it takes a company to pay its suppliers.

The days payables outstanding (DPO) ratio is used to assess how efficiently a company manages its accounts payable. It calculates the average number of days it takes for a company to pay its suppliers after receiving an invoice. A higher DPO ratio indicates that the company is taking longer to pay its suppliers, which may have implications for its relationships with suppliers.

The formula is as follows:

\[\text{Days Payables Outstanding} = (\text{Average Accounts Payable} / \text{Cost of Goods Sold}) \cdot \text{Days}\]

Also known as: DPO, days payable outstanding.

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Calculate the Days of Accounts Payable Outstanding in Python

The Days of Accounts Payable Outstanding is available in the Ratios module of the open-source Finance Toolkit. Install it with:

pip install financetoolkit -U

Then call get_days_of_accounts_payable_outstanding as shown below.

from financetoolkit import Toolkit

toolkit = Toolkit(["AAPL", "TSLA"], api_key="FINANCIAL_MODELING_PREP_KEY")

dpo_ratios = toolkit.ratios.get_days_of_accounts_payable_outstanding()

Which returns:

  2021 2022 2023 2024 2025
AAPL 83.1683 97.0504 108.003 114.15 114.657
TSLA 72.951 76.1207 68.4805 61.1935 60.6784

Parameters

get_days_of_accounts_payable_outstanding accepts the following parameters:

  • days (int, optional): The number of days to use for the calculation. Defaults to 365.
  • rounding (int, optional): The number of decimals to round the results to. Defaults to 4.
  • growth (bool, optional): Whether to calculate the growth of the ratios. Defaults to False.
  • lag (int | str, optional): The lag to use for the growth calculation. Defaults to 1.
  • standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
  • trailing (int): Defines whether to select a trailing period. E.g. when selecting 4 with quarterly data, the TTM is calculated.
Asset Turnover Ratio Inventory Turnover Ratio Days of Inventory Outstanding Days of Sales Outstanding Operating Cycle Accounts Payables Turnover Ratio Cash Conversion Cycle Cash Conversion Efficiency Receivables Turnover SGA to Revenue Ratio Fixed Asset Turnover Operating Ratio

The Ratios module page introduces the module, and the sidebar lists all of its functions.

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