DAYS PAYABLE OUTSTANDING (DPO) is an estimate of the length of time the company takes to pay its vendors after receiving inventory. If the firm receives favorable terms from suppliers, it has the net effect of providing the firm with free financing. If terms are reduced and the company is forced to pay at the time of receipt of goods, it reduces financing by the trade and increases the firms working capital requirements. It is calculated: Days Payable Outstanding = 365 / Payables Turnover (Payables Turnover = Purchases / Payables).
FBWT, in finance, is Fund Balance With Treasury.
OPERATING CASH FLOW RATIO is a measure of how well current liabilities are covered by the cash flow generated from a companys operations. It is calculated: OCF = Cash Flow From Operations / Current Liabilities.
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