a-large-corporation-has-a-dpo-of-90-days-while-the-industry-average-is-60-days-w

Question

A large corporation has a DPO of 90 days, while the industry average is 60 days. What might this indicate about the corporation's operations?

Accepted Answer

The corporation is using supplier credit as a form of interest-free financing.

Answer

The corporation is likely to face cash flow issues due to delayed payments.

Answer

The corporation is not competitive in its industry.

Answer

The corporation has poor relationships with its suppliers.