Remove Credit Management Remove Current Receivables Remove Total Receivables
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Difference Between Standard DSO vs Best Possible DSO

Gaviti

It includes both the current receivables and overdue invoices. Most often, managers use a timed cycle to calculate DSO. DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? So, what is the difference and why does it matter?

DSO 52
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Evidence It's Time to Adjust Your Collection Practices

Your Virtual Credit Manager

Use the following formula to determine your CEI: (Beginning receivables + Monthly credit sales - Ending total receivables) ÷ (Beginning receivables + Monthly credit sales - Ending current receivables). Then multiply the answer by 100 to get a percentage.

DSO 130