REL/CFO Study: How Does Your DPO Stack Up?
August 2007
Monitoring your days payables outstanding (DPO) metric is important because it is a key component in your company’s formula for calculating working capital. Companies must maintain the proper amount of working capital to pay for daily operations and to finance future growth. So if your DPO is out of whack, it will throw your company’s working capital out of whack, too—and you’ll get someone from the CFO’s office knocking on your door.
2008
