What values for DSO, DPO, and DIO are “good”?

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DSO (days sales outstanding), DPO (days payable outstanding), and DIO (days inventory outstanding) depend on the sector, seasonality, and bargaining power. Your goal is to improve the trend: reduce DSO with credit policies and reminders, reduce DIO by optimizing purchases and turnover, and increase DPO without damaging key relationships. The real key is not to generate empty cycles between collections and payments.

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