Days Sales Outstanding – the typical number of days taken for the company’s customers to pay their invoices. Enforcing payment discipline must be a key a half of your payables course of. Analysis of working capital levels exhibits that the biggest enchancment comes from improved payables efficiency and reduced days payable outstanding . Extending DPO ought to now not be thought of a viable possibility, notably with many distributors having been affected by the pandemic and due to this fact unlikely to offer the choice. If inventory levels are unknown, then it is tough to manage the optimum level and the company risks experiencing a loss in sales, because of a shortfall in supplies.