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What is Days Ratios: DSO, DPO, DIO Explained about?

This document discusses three ratios - DSO, DPO, and DIO - that measure the average number of days it takes a company to collect revenue from clients, pay suppliers, and turn inventory into sales. DSO is calculated by dividing trade receivables by revenue and multiplying by 360. DPO divides trade payables by cost of goods sold and multiplies by 360. DIO divides inventory by cost of goods sold and multiplies by 360. These ratios help analyze the efficiency of a company

Author

Ali Kara

Language

EN