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Payables: DPO and on-time payment
Track how long you take to pay suppliers and how many invoices are paid on time.
Finance & unit economicsHow it's worked out
- DPO = payables ÷ purchases × days. On-time = paid by due date ÷ paid
- Purchases or cost of goods over the same period
NoteA long DPO helps cash, but paying late damages supplier terms. In India, see the MSME payment calculator for the 45-day rule.
Source: Standard working-capital analysis
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