Series 79: Days Payables Outstanding (DPO)

Taken from our FINRA Investment Banking Exam

Definition of the term Days Payables Outstanding (DPO)...

the average number of days it takes for a company to pay its suppliers during a given accounting period, such as a fiscal year. It equals the number of days in the accounting period over the payables turnover ratio. Compare to payables turnover ratio.

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Solomon Exam Prep Study Materials for the Series 79
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