Days payables outstanding and MLR 2017: Difference between pages

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imported>Doug Williamson
(Expand definition.)
 
imported>Doug Williamson
(Note Minimum Lending Rate as UK.)
 
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''Financial ratio analysis - management efficiency ratios.''
''Anti money laundering - UK''.


(DPO).
The Money Laundering Regulations 2017.


Days payables outstanding are a working capital management ratio calculated by dividing accounts payable outstanding at the end of a time period by the average daily credit purchases for the period. 


Payables days measures the average number of days taken to pay trade suppliers.
Not to be confused with the former UK Minimum Lending Rate (MLR).
 
 
 
For example: a company has an average of £50,000 of payables over a year in which the cost of goods sold was £400,000.
 
The DPO is:
 
50,000 / 400,000 * 365 = 45.6 days
 
 
A higher number is generally perceived as better, but a business needs to maintain the goodwill of its suppliers and a shorter payment terms may therefore be necessary.
 
 
Also known as Creditor days or Payables days.




== See also ==
== See also ==
* [[Creditors]]
* [[AML4]]
* [[Debtor days]]
* [[MLR]]
* [[Management efficiency ratio]]
* [[Money laundering]]
* [[Payables management]]
* [[Money Laundering Regulations 2017]]
* [[SOCA]]
* [[USA PATRIOT Act]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]

Revision as of 20:54, 6 February 2019

Anti money laundering - UK.

The Money Laundering Regulations 2017.


Not to be confused with the former UK Minimum Lending Rate (MLR).


See also