DSO vs. DPO

Why is it that days sales outstanding is calculated based on credit sales, but days payable outstanding is calculated based on all purchases (COGS) rather than just credit purchases?

6,183 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '21 Nov 2026 Cohort

5.00/5

Investment Banking Mock Interview

“The session with Javier was excellent. We started by going through our backgrounds - it was interesting to hear how he moved from IB to running his own real estate portfolio at a small PE firm. We then covered the behavioural part, which was very useful, and the technical part, with a good range of questions on accounting, valuation and DCF. He gave clear points for improvement, especially on structuring behavioural answers and preparing for the tougher questions that come up in PE interviews. Very grateful - thank you!”

Class of '30 Nov 2026 Cohort

5.00/5

Investment Banking Full Resume Review

“Sereena gave me very detailed feedback through email communications. She asked me very specific questions for every bullet points on my resume that needs to be clarified or more specific, and this pushed me to reflect more. Regarding the communication, she emailed me back within 48 hours. I do wish that the communication could be faster, but it's fine since I didn't responded fast as I was working on my midterms. Since I haven't had many finance experiences, my current version of resume didn't have many meaningful finance content, but I believe Sereena has tried her best to make sure each point presents the best of itself. To add on, regarding the form of communication, I personally prefer meeting. ”

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DSO vs. DPO

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