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Investments glossary

Days Payable Outstanding – DPO Definition


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Quotes of the day:

A lot of other countries have central government systems that buy drugs for other people. That can reduce the fluctuations.

— Aaron Kesselheim

Days payable outstanding (DPO) is a financial ratio that indicates the average time (in days) that a company takes to pay its bills and invoices to its trade creditors, which include suppliers, vendors or other companies. The ratio is calculated on a quarterly or on an annual basis, and it indicates how well the company’s cash outflows are being managed.

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