PrimeRevenue Inc., a provider of working capital financial technology solutions, have announced the beta release of its Working Capital Grader, an interactive working capital tool which companies can use to compare their performance to their publicly-traded peers and competitors.

Interactive tool

This interactive, self-service tool leverages PrimeRevenue's 14 years of experience analyzing more than $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 - Days Payable Outstanding. 

The tool uses the limited 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. 

"If your company is a below-average performer in terms of DPO you could be making it easier for your competitors to hold on to their cash," said Tom Roberts, PrimeRevenue's SVP, global marketing. "Conversely, if you're a best performer and don't have an effective supply chain finance program, you could be inflicting undue hardships on your suppliers. Regardless, understanding what cash flow improvements are possible starts with the ability to analyze your company's performance in the context of your broader marketplace."

Customised reports

While the Working Capital Grader currently only calculates results for publicly-traded companies, PrimeRevenue encourages anyone interested to get in touch to discuss a potential customized report.