Projection of DSO, DIO, DPO
I am doubtful as to how did you project the dso, dio and DPO projections in the drivers sheet as well as in the working capital sheet. Is it purely based on company assumptions or is there any metric and concept involved. Thank you
1 answers ( 0 marked as helpful)
Hello Harsh,
Thank you for your question!
The projections for Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payable Outstanding (DPO) in both the drivers sheet and the working capital sheet are primarily based on company-specific assumptions. These assumptions are typically derived from historical data, industry benchmarks, management insights, and strategic forecasts.
Let me know if you need further clarification!
Kind regards,
The 365 Team
Thank you for your question!
The projections for Days Sales Outstanding (DSO), Days Inventory Outstanding (DIO), and Days Payable Outstanding (DPO) in both the drivers sheet and the working capital sheet are primarily based on company-specific assumptions. These assumptions are typically derived from historical data, industry benchmarks, management insights, and strategic forecasts.
Let me know if you need further clarification!
Kind regards,
The 365 Team