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The following section summarizes insights on Neo Technical System Co Ltd's Days Payables Outstanding:
We've identified the following companies as similar to Neo Technical System Co Ltd because they operate in a related industry or sector. We also considered size, growth, and various financial metrics to narrow down the list to the ones listed below.
To view the full list of supported financial metrics please see Complete Metrics Listing.
Metrics similar to Days Payables Outstanding in the efficiency category include:
A working capital efficiency ratio used to estimate the average number of days the firm has to pay its suppliers.
Days Payables Outstanding is defined as:
Average Accounts Payable
(/) Cost of Sales
(x) 365
(=) Days Payables Outstanding
Days Payables Outstanding for Neo Technical System is calculated as follows:
Average Accounts Payable [ (₩2.633 B + ₩4.113 B) / 2 ]
(/) Cost of Sales [ ₩40.932 B ]
(x) 365
(=) Days Payables Outstanding [ 30 days ]
Days Payable Outstanding is a ratio that indicates how many days it takes a company to pay its suppliers. A company would prefer to have a higher DPO ratio in relation to its Days Sales Outstanding ratio. This would mean that the company is able to collect its cash earned from sales sooner than the company is required to pay its suppliers which is good for Net Working Capital and free cash flow.
Read more about cash conversion cycle, days sales outstanding, and days inventory outstanding