A high DPO indicates better cash flow management but may signal financial problems if abnormally high. Companies aim for a high DPO and low DSO to maximize cash efficiency. Calculating DPO involves ...

Working capital is best described as the funds used to run day-to-day business operations. Whether it’s buying raw materials and services, paying employees or keeping the lights on, working capital is ...

Working capital efficiency can be assessed using cash conversion cycle (CCC). Let us look at the computation of CCC along with its inference rule. Let us assume the following figures (amount in Rs ...

Most companies pay for goods and services using credit and then receive an invoice from their vendors and suppliers. Days payable outstanding, or DPO, is the average number of days a company takes to ...