Treasury Today Country Profiles in association with Citi

Why working capital KPIs aren’t cutting it

Keeping tabs on key treasury KPIs used to be a relatively straight-forward business. Three metrics – days sales outstanding (DSO), days payables outstanding (DPO) and days inventory outstanding (DIO) – were thought to provide treasurers with an accurate measure of their working capital efficiency. Adopting such metrics was also seen as a critical step on the way to achieving the Holy Grail: best practice in cash flow – both in the management and forecasting disciplines.

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