Working Capital “Days”

DSO
Trade Receivables Trade Receivables
Clients Generated from selling
Revenues
x 360
products on credit

DPO
Trade Payables Trade Payables
Suppliers Generated by the acquisition of Revenues
Cost of goods sold
x 360
Raw Materials from Suppliers

DIO
Inventory
Inventory
Company The amount of goods and x 360
finished products held by the Cost of goods sold
company

Supplier delivers Products in the Raw Materials Clients buy the Clients pay the
Raw Materials company’s warehouse paid to suppliers company’s products products
DPO
DIO
DSO