When considering only Days Payables Outstanding (DPO) are there different approaches to consider more line items from Current Liabilities?
For example, we know accounts payable relate to goods and services, however, there are also other obligations and expenses including short-term debt, current long-term debt, and accrued and other expenses. Would it be prudent to include all of these in the DPO portion of the Cash Conversion Cycle?
I would assume we would not consider items like deferred/unearned revenue, income taxes payable, deferred income taxes, etc.
Thanks for you input in advance.
For example, we know accounts payable relate to goods and services, however, there are also other obligations and expenses including short-term debt, current long-term debt, and accrued and other expenses. Would it be prudent to include all of these in the DPO portion of the Cash Conversion Cycle?
I would assume we would not consider items like deferred/unearned revenue, income taxes payable, deferred income taxes, etc.
Thanks for you input in advance.
