Emagia

NOVEMBER 7, 2024

DSO Mean DSO, or Days Sales Outstanding, is a key financial metric that measures the average number of days it takes for a company to collect payment after a sale. A lower DSO indicates quicker collections and better cash flow, while a higher DSO may signal potential issues in credit management.

DSO 40

DSO Days Sales Outstanding Credit and Collections Dashboards 40

Gaviti

JANUARY 2, 2024

Here’s the formula for Average Days Delinquent: ADD = Days Sales Outstanding (DSO) – Best Possible Days Sales Outstanding (BPDSO) Note the role of the DSO metric in this calculation. But continually high ADD scores across clients may indicate poor collection efficiency on your side.

Collection Effectiveness Index 52

Collection Effectiveness Index Average Days Delinquent DSO Days Sales Outstanding 52

Your Virtual Credit Manager

MAY 14, 2024

Monthly: The Three Weekly Metrics listed above Days Sales Outstanding (DSO) – This metric expresses the level of AR as the number of days of sales that comprise your AR total. For example, if you sell on Net 30 day credit terms, and all your invoices were paid on the due date, your DSO would be 30 days.

AR Metrics 130

AR Metrics DSO Credit and Collections Accounts Receivable (AR) 130