A high DPO indicates better cash flow management but may signal financial problems if abnormally high. Companies aim for a high DPO and low DSO to maximize cash efficiency. Calculating DPO involves ...

A company's operating cycle, or cash conversion cycle, shows the length of time it takes a company to buy inventory, convert it into sales and collect the "accounts receivable" revenue from the sales.

Working capital is best described as the funds used to run day-to-day business operations. Whether it’s buying raw materials and services, paying employees or keeping the lights on, working capital is ...

Your company's operating cycle provides a gauge of how long it has cash tied up in operations, which is why it's also commonly referred to as the cash conversion cycle. The operating cycle is a rough ...