The companies can use the tool to compare their performance to their publicly-traded peers and competitors.
This interactive, self-service tool leverages PrimeRevenue’s 14 years of experience analyzing more than USD 2T in annualized spend, allowing companies to compare themselves to up to nine industry peers with one metric. A participating company will receive a working capital grade, a numerical score out of 100, that shows how they’re doing in relation to their peers when it comes to their average payable period, otherwise known as days payable outstanding (DPO).
The tool is using information such as DPO and cost of goods sold to calculate a high-level overview of potential working capital improvements.
In addition to displaying how the company stacks up in relation to its peers, the analysis shows what the peer group’s best, top quartile and average DPO metrics are and what kind of cash flow could be generated by moving to another position.
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