DPO Measures the Efficient Use of Working Capital

July 14, 2021

Share

Days payables outstanding (DPO) is a measurement that many executives, auditors, and consultants use to measure the efficiency of accounts payable departments. It is an important metric used in measuring the efficient use of working capital. While AP isn’t solely responsible for this number, a well-run AP department maximizes its contribution to DPO by every means possible. What Is DPO? In the parlance of financial ratios, DPO is classified as an activity ratio. Simply put, it is a company’s…

  Become A Member

Join IOFM today as a Professional, Business, or Enterprise Member — or upgrade your Starter Membership — to get access to this content and thousands of other Articles, Webinars, Expert Answers, Resource Downloads, and more!

Join Today

Subscribe to our Monthly Insider

You may unsubscribe from our mailing list at any time. Diversified Communications | 121 Free Street, Portland, ME 04101 | +1 207-842-5500