# DPO

> DPO is a liquidity and working-capital metric, calculated as (Ending AP ÷ COGS for the period) × Days in the period. Some use purchases rather than COGS, which suits a business whose AP is mostly opex. Render with on-time payment rate adjacent — see procure to pay.

Source: https://lopifi.com/glossary/dpo
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is dpo?** DPO is a liquidity and working-capital metric, calculated as (Ending AP ÷ COGS for the period) × Days in the period.

## Formula

`(Ending AP ÷ COGS for the period) × Days in the period`

## Note

Some use purchases rather than COGS, which suits a business whose AP is mostly opex. Render with on-time payment rate adjacent — see procure to pay

- **Category:** Liquidity & working capital
- **Specified in:** [Metric definitions](https://lopifi.com/md/docs/domain/10-metrics)
- **Related:** period, cost-of-revenue