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DPO
Finance

DPO (Days Payables Outstanding)

Days Payables Outstanding

Average number of days a company takes to pay suppliers.

Examples

  1. 01The company pays its suppliers after an average of 52 days, giving a DPO of 52.
  2. 02The finance review shows DPO by supplier group, which helps negotiate payment terms in line with industry norms.
  3. 03When DPO is raised too far, some small suppliers struggle, so purchasing balances payment terms with supply risk.

Related terms

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