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Difference Between Standard DSO vs Best Possible DSO

Gaviti

DSO Formula (Ending Total Receivables ÷ Total Credit Sales) x Number of Days What Is the ‘Best Possible’ DSO? Get started with a free demo. This generally manifests as monthly, quarterly or annually. Because it can be calculated and recalculated regularly, it shows a detailed picture of progress over time.

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Accounts Receivable Performance Metrics: 5 KPIs You Should Be Tracking

Gaviti

This number is displayed as a percentage: Collection Effectiveness Index = (Beginning Receivables + Monthly Credit Sales – Ending Total Receivables) / (Beginning Receivables + Monthly Credit Sales – Ending Current Receivables) x 100 3.

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6 Cash Flow Performance KPIs Every CFO Needs to Track

Gaviti

(DSO alone may account for receivables that don’t directly correlate with credit sales figures in the measured time period, reducing its accuracy when compared with shorter-term CEI calculations.) Book a demo today to see how you can get started improving your cash flow with Gaviti.