DPO and Floating rate note: Difference between pages

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imported>Doug Williamson
(Expand calculation.)
 
imported>Doug Williamson
(Expand.)
 
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1.
(FRN).  


Days Payables Outstanding.
A bond, normally with a fixed maturity, where the interest coupon is adjusted at regular intervals reflecting the prevailing market rate (usually at a margin over LIBOR).


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. 


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.
Sometimes known as a floating rate ''bond''.
 
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.
 
 
2.
 
Data Protection Officer.




== See also ==
== See also ==
* [[Accounts payable management]]
* [[Bond]]
* [[Creditors]]
* [[Capped FRN]]
* [[DIO]]
* [[Convertible FRN]]
* [[DSO]]
* [[LIBOR]]
* [[General Data Protection Regulation]]
* [[Nominal bond]]
* [[Payables management]]
 
[[Category:Context_of_treasury]]
[[Category:Corporate_financial_management]]
[[Category:Cash_management]]
[[Category:Technology]]

Revision as of 20:25, 14 November 2016

(FRN).

A bond, normally with a fixed maturity, where the interest coupon is adjusted at regular intervals reflecting the prevailing market rate (usually at a margin over LIBOR).


Sometimes known as a floating rate bond.


See also

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