answersLogoWhite

0

The average settlement period for payables, often referred to as Days Payable Outstanding (DPO), typically ranges from 30 to 90 days, depending on the industry and business practices. This metric indicates how long a company takes to pay its suppliers after receiving goods or services. A longer DPO can improve cash flow but may strain supplier relationships, while a shorter DPO might indicate a company is paying its obligations quickly, potentially impacting cash reserves.

User Avatar

AnswerBot

1w ago

What else can I help you with?

Related Questions

What is Average settlement period for trade receivable?

Average settlement period for trade receivables = Average inventory held divided by cost of sales (times 365).


The zocco corp has an inventory conversion period of 75 days an average collection period of 38 days and a payables deferral period of 30 days. what is the length of the cash conversion cycle?

75+38-30=38


Stock subscription payables is debt?

stock subscription payables is debt ?


Is payables a liability?

Yes, payables are those that are not yet payed or plainly, a liability. ;3


What is the average settlement payout for a fractured skull?

whats the average settlement payout for a fractured skull


What is the average settlement on bladder mesh lawsuit?

There is no average settlement but just recently there was Johnson & Johnson Transvaginal Mesh Settlement for $1.2 Million Dollars.


What is the abbreviation of Accounts Payables?

AP


Is credit sales in account payables?

no


Who is especially interested in the average payment period?

The average payment period is particularly of interest to creditors and financial analysts. Creditors use this metric to assess how effectively a company manages its payables and to evaluate its liquidity and cash flow management. Investors may also analyze this figure to understand a company's financial health and operational efficiency. Additionally, management teams monitor it to optimize working capital and payment strategies.


What is the average value of an IRS settlement?

The average settlement for an Inland Revenue Service settlement is approximately 12 percent on the dollar. This varies with how much or how little you owe.


What you average settlements for whiplash?

What is the average whiplash settlement


What is the average insurance settlement for a broken femur?

average 167k