Supplier Financial Metrics
In the metrics box on the Ratings and Metrics tab of the supplier card, key metrics such as DSO (day sales outstanding) and the supplier's year-over-year revenue growth are presented for analysis.
There are two financial metrics shown for the supplier
- Days Sales Outstanding, or DSO
- Sales Revenue Growth
If the financials are not available they will not be shown and you will see "N/A" on the ADA Platform.
Days Sales Outstanding
- The ADA Platform uses the supplier's most recent average accounts receivable and sales revenue from their financial statements (if available) to calculate the DSO
- DSO = (Average Accounts Receivable) / (Annual Revenue) x 365 Days
Revenue Growth
- The ADA Platform uses the supplier's most recent sales revenue and the prior years sales revenue (if available) to calculared the revenue growth.
- Revenue Growth = (Current Year Sales Revenue) - (Prior Year Sales Revenue) / (Prior Year Sales Revenue)
0:00 - The metrics box on the ratings and metrics tab on the supplier card, the DSO, or day sales outstanding, and the revenue growth of the supplier year over year.
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