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).
POST is the transfer of accounting entries from a journal of original entry into a ledger book, in chronological order according to when they were generated.
VALUATION RATIO is a fraction in which a value or price serves as the numerator and financial, operating, or physical data serve as the denominator.
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