Many companies opt to pay strategic vendors and suppliers earlier, while other organizations may opt for a higher DPO to improve cash flow. Having a high DPO can result in damaged supplier relationships, late fees, reduced credit rating, cash flow problems, and in some cases, require legal action. That said, this is of course only […]
Monthly Archives: November 2021
Days payable outstanding (DPO), or accounts payable days, is a ratio that measures the average number of days it takes for a business to pay its invoices. However, since invoice payments are often tied to cash flow, DPO can also be thought of as a measure of how long a business holds onto its cash […]