Glossary
What are creditor days?
Creditor days is the average number of days a business takes to pay its suppliers: trade creditors (accounts payable) divided by purchases or cost of sales for the period, multiplied by the days in the period. Read with debtor days, it shows whether a business is being paid before or after it pays.
Also called: Days payable outstanding, DPO
A creditor days figure well above the terms suppliers offer usually means bills are being paid late. A figure well below them can mean the business is paying faster than it needs to and giving up working capital.
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