what-does-days-payable-outstanding-dpo-measure-in-financial-analysis

Question

What does Days Payable Outstanding (DPO) measure in financial analysis?

Accepted Answer

The average number of days a company takes to pay its suppliers.

Answer

The average number of days it takes to convert raw materials into finished goods.

Answer

The average number of days inventory is held before being sold.

Answer

The average number of days a company takes to collect cash from customers.