A measure of a company’s average payable period. Also called Days Payable Outstanding (DPO). Tells how long it takes a company to pay its invoices from trade creditors, such as suppliers. Companies must strike a delicate balance with DPO. The longer they take to pay their creditors, the more money the company has on hand,…

BPIR Categories

15.3.1 Financial performance
15.6.11 Financial management

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