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Difference Between Standard DSO vs Best Possible DSO

Gaviti

Days sale outstanding is one of the most widely used criteria for judging the effectiveness of your accounts receivable strategy. DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? Get started with a free demo.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

Most Accounts Receivable teams use DSO as the main KPI to measure their performance. By extension, most A/R invoice-to-cash management platforms and teams base their key performance indicators (KPIs) on the measurement of Days Sales Outstanding, or DSO.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

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. Book a demo today to see how you can get started improving your cash flow with Gaviti.