A measure of how long it takes a company to pay its creditors is?

Question

Quizplus · Accepted Answer

Days payable outstanding is a measure of how long it takes a company to pay its creditors. It is calculated by dividing accounts payable by the cost of goods sold and multiplying the result by the number of days in the period. A higher number of days payable outstanding indicates that a company is taking longer to pay its bills, which may result in strained relationships with suppliers.

A Measure of How Long It Takes a Company to Pay