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Ratios: Days Payable Outstanding (DPO)
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Ratios: Days Payable Outstanding (DPO)
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14. Financial Statement Analysis / Ratios: Days Payable Outstanding (DPO) / Problem 8
Problem 8
What might a significantly higher DPO than industry benchmarks indicate?
A
The company may be using supplier credit as a form of financing, which could be risky.
B
The company has a higher market share than its competitors.
C
The company is more efficient in inventory management.
D
The company is outperforming its competitors in terms of revenue.
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