Payables Turnover Calculator
Enter annual purchases and average accounts payable to get the payables turnover ratio and DPO.
Result
How to use
- Enter your values in the fields above.
- Press Calculate to see your result instantly.
- Use the Share button to copy a link to your result.
About this calculator
This calculator computes the accounts payable turnover ratio, purchases (or COGS) ÷ average accounts payable, showing how many times a company pays off its supplier balance over a period, then converts it into days payable outstanding (DPO = 365 ÷ turnover) — the average number of days it takes to pay invoices.
CFOs and credit analysts use it to judge whether a company is paying suppliers promptly or stretching payment terms to conserve cash, and comparing DPO against a company's days sales outstanding and inventory days builds the full cash conversion cycle — how long cash is tied up before it comes back in.
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