Payables Turnover Calculator
Calculate payables turnover ratio and days payables outstanding to measure payment efficiency.
Purchase Data
$500,000
$10,000$5,000,000
$600,000
$10,000$5,000,000
Accounts Payable
$40,000
$0$500,000
$60,000
$0$500,000
Payables Turnover Ratio
10.00x
Payables turned over 10.0 times per year
Days Payables Outstanding
37 days
Average Payables
$50,000
DPO (using COGS)
30 days
Alternative method
Daily Purchases
$1,370
Payment Analysis
Turnover Rate10.00x per year
Average Payment Period37 days
AP to Purchases10.0%
DPO Interpretation
0-20 daysVery Fast Payment
21-30 daysStandard Terms
31-45 daysExtended Terms
45+ daysVery Extended
Assessment: Balanced payment cycle
Payables Turnover Formulas
Payables Turnover
Total Purchases / Average AP
Or: COGS / Average AP (when purchases unavailable)
Days Payables Outstanding
365 / Payables Turnover
Average days to pay suppliers