# Peer Group Comparison

## Benchmark – Days Payable Outstanding – DPO (days)

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.

### DPO Formula

DPO = (Average Accounts Payable / Cost of Goods Sold) x Number of Days in Accounting Period.

### Performance Overview

- **Lowest Performers**
  - Company Name
  - 4rd Quartile

- **Peer Group Average**
  - 3rd Quartile Performers

### Days

| Quartile          | Days |
|-------------------|------|
| 1st Quartile      |      |
| 2nd Quartile      |      |
| 3rd Quartile      |      |
| 4th Quartile      |      |
| Your Company       |      |
| Peer Group Average |      |

## Benchmark – Days Sales Outstanding – DSO (days)

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.

### DSO Formula

DSO = (Average Accounts Receivables / Sales) x Number of Days in Accounting Period.

### Performance Overview

- **Lowest Performers**
  - Company Name
  - 4rd Quartile

- **Peer Group Average**
  - 3rd Quartile Performers

### Days

## Benchmark - Average Payment Terms (days)

The average time it takes #COMPANY_NAME# to pay its suppliers in comparison with its peer-group.

### Payment Terms Formula

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.

### Performance Overview

- **Lowest Performers**
  - Company Name
  - 4rd Quartile

- **Peer Group Average**
  - 3rd Quartile Performers

### Days

## By Optimizing DPO & Payment Terms

Potential cash flow (USD, millions) achieved when optimizing DPOs and payment terms with suppliers.

### Cash Flow Impact Overview

| Description                      | Amount |
|----------------------------------|--------|
| Move to Top Performer             | 623    |
| Move to 1st Quartile             | 138    |
| Move to 2nd Quartile             | 623    |
| Move to Peer Group Average        | 623    |
| Move to 3rd Quartile             | 138    |

### Cash Flow Impact

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.