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Days Payable Outstanding (DPO) = Average Accounts Payable + Cost of Goods Sold per day This ratio refers to the average number of days it
Days Payable Outstanding (DPO) = Average Accounts Payable + Cost of Goods Sold per day This ratio refers to the average number of days it takes a company to pay back its accounts pyables. It measures how well the company is managing its accounts payable. A DRO of 20 means that, om average, the company takes 20 days to pay back its suppliers. The ratio is computed by dividing the average Accounts Payable for the year laverage accounts payable = average of the beginhing balance of accounts payable and ending balance of accounts payable) divided by the Cost of Goods Sold per day (also referred to as Cost of Sales or Merchandise Costs or Cost of Products Sold). Assume 365 days in a year. Which of the following companies has the highest Days Payable Outstanding? Costco Wholesale Corporation (for the vear ended Aug 28, 2022) The Home Depot, Inc. (for fiscal 2021) The Kroyer Compary (for the year 2021 - ended January 29, 2022) Walmart loc for the year ended January 31. 2022)
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