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ΟικονομικάDPO

DPO (Days Payable Outstanding)

Σύντομη απάντηση

Average number of days from supplier invoice receipt to actual payment.

Βασικά συμπεράσματα

  • High DSO + low DPO = cash trapped (customers pay you late, you pay suppliers fast)
  • Low DSO + high DPO = cash surplus (customers pay fast, suppliers wait)

Definition

DPO (Days Payable Outstanding) = (Trade payables / Operating costs) × Days. Measures how many days you hold a supplier invoice before paying.

DPO vs DSO - the cash balance

  • High DSO + low DPO = cash trapped (customers pay you late, you pay suppliers fast)
  • Low DSO + high DPO = cash surplus (customers pay fast, suppliers wait)

Cash Conversion Cycle = DSO + DIO (days inventory) - DPO

Pitfalls

  • DPO "stretched" by abusive delays → damaged relationships, lost cash discounts, supply blocks
  • Artificially low DPO from broken processes → missed discounts, duplicate payments

Ενημέρωση:

Συχνές ερωτήσεις

What is a "good" DPO?+

Equal to or slightly above contractual terms. DPO much above contract = abusive. DPO below contract = you lose cash discounts.

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