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Receivables Turnover vs. Days Sales Outstanding (DSO): What’s the Difference?

Gaviti

Typically, accounts receivables turnover is measured as a ratio that compares your net credit sales against how many times you’ve collected receivables over a given period of time (average accounts receivable). That means that the average number of days it takes the manufacturing company to collect on its receivables is 10.5.

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7 Strategies to Reduce DSO and Enhance Cash Flow

Gaviti

Companies who are able to get their traditional DSO within 3-4 days of the Best Possible DSO on average, however, benefit from healthy cash flows, long-term business growth and higher valuations. With a self service payer or customer portal, customers also don’t need sensitive information such as your bank account details.

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