With U.S. interest rates rising, companies are expected to pay more attention to wringing the most cash possible out of receivables and payables. As they do, technologies ranging from electronic invoicing to integrated receivables are expected to smooth the way.
Working capital metrics have deteriorated in recent years, according to The Hackett Group, which produces an annual benchmarking study based on financial statements of the 1,000 largest U.S. publicly traded nonfinancial companies.
The most recent Hackett report, released in July, showed days sales outstanding—the amount of time it takes companies to collect receivables, also known as DSO—stood at 36.7 days in 2015, up from 36.3 days in 2014. Days inventories outstanding, or DIO, stood at 49.1 days, up from 44.5 days.
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Susan Kelly
Susan Kelly is a business journalist who has written for Treasury & Risk, FierceCFO, Global Finance, Financial Week, Bridge News and The Bond Buyer.
