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An important player in effective cash flow management is dayssalesoutstanding (DSO). DSO is the average number of days a company takes to collect a customer’s payment for a sale. Part of the cash conversion cycle, DSO is also sometimes referred to as “days receivables” or “cash collection period.”.
Working capital management aims to decrease the amount of time it takes to receive cash after a sale, or dayssalesoutstanding (DSO). One of the most common causes of extended DSO is uncollected sales. In fact, according to a study of 27,000 companies around the world, DSO averages 64 days.
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