Term of the Day: Days Sales Outstanding - DSO

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	INVESTOPEDIA Term Of The Day November 4, 2015 Days Sales Outstanding - DSO A measure of the average number of days that a company takes to collect revenue after a sale has been made. DSO is often determined on a monthly, quarterly or annual basis and can be calculated by dividing the amount of accounts receivable during a given period by the total value of credit sales during the same period, and multiplying the result by the number of days in the period measured. A low DSO value means that it takes a company fewer days to collect its accounts receivable. A high DSO number shows that a company is selling its product to customers on credit and taking longer to collect money. Days sales outstanding is also often referred to as "days receivables" and is an element of the cash conversion cycle. Breaking It Down: Due to the high importance of cash in running a business, it is in a company's best interest to collect outstanding... Read More Related to "Days Sales Outstanding - DSO" Free Cash Flow: Free, But Not Always Easy The best things in life are free, and the same holds true for cash flow. Smart investors love companies that produce... Read More Day Sales Outstanding Learn more about how day sales outstanding, or DSO, is calculated and used to measure the average number of days a... Read More Understanding The Cash Conversion Cycle The cash conversion cycle (CCC) is one of several measures of management effectiveness. It measures how fast a company... Read More Recently Added Definitions Single-Disbursement Lump-Sum Payment Plan A way to receive reverse mortgage proceeds in which the borrower receives a large amount of money when... Read More Bank Deposits Money placed into a banking institution for safekeeping. Bank deposits are made to deposit accounts at... Read More Related Definitions Cash Flow Credit Cash Discount Accounts Receivable - AR Days Payable Outstanding - DPO Past Terms of the Day Days Sales Of Inventory - DSI Tombstone Halloween Strategy Jekyll and Hyde Corporate Cannibalism You are currently subscribed as: mondemand.forex@blogger.com Unsubscribe | Manage Subscriptions Investopedia US, A Division of IAC. Copyright © 2015, Investopedia, LLC. All Rights Reserved Follow Us: