Days Payable Outstanding or Payable Days indicates the number of days taken by the company to pay off its Payable Balance.
Higher the Payable Days, better the company’s liquidity position.
But, delaying the payment frequently, may lead to worsening of relationship with the supplier/creditor.
This Template helps you in calculating the Payable Days quickly.
Our detailed article on Payable Days Formula Explains everything you need to know about this ratio
- All the financial information required are presented in separate worksheet.
- The main calculation sheet takes the values from the income statement and balance sheet to arrive at the ratio.