The financial ratio that indicates the average time that #COMPANY_NAME# takes to pay its invoices to its trade creditors in comparison with its peer group.
Days Payable Outstanding (DPO) indicates the average number of days that a company takes to pay invoices to its trade creditors.
DPO = (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Accounting Period.
The financial ratio that indicates the average time that #COMPANY_NAME# takes to collect payment from its customers after the completion of a sale in comparison with its peer group.
Days Sales Outstanding (DSO) measures the average number of days that a company takes to collect payment after a sale has been made.
DSO = (Average Accounts Receivables/ Sales)x Number of Days in Accounting Period.
The average time it takes #COMPANY_NAME# to pay its suppliers in comparison with its peer-group.
Payment Terms measures the length of the actual average payment terms in days between the time of the invoicing and the payment of the respective invoice.
The cash flow impact measures the potential impact on the company’s working capital when optimizing its terms in terms of Days Payable Outstanding (DPO) and payment terms in comparison with the top performer, 1st quartile, peer group average, and 3rd quartile.
