Days Payable Outstanding (DPO) is a financial metric that measures the average number of days a company takes to pay its suppliers for goods and services received. This key figure helps businesses manage cash flow effectively, providing insights into how well a company is using its short-term liquidity and managing its liabilities. A higher DPO indicates that a company is taking longer to pay its bills, which can be beneficial for cash flow but may also signal potential cash flow issues or strained supplier relationships.
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