To calculate DSO (Days Sales Outstanding), one is required to divide the average accounts receivable by the net credit sales and then multiply the result by the number of days in the period. This method is crucial for assessing the efficiency of a company’s credit and collection processes. The ability to calculate DSO is essential for gaining insights into cash flow management and optimizing working capital.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Emagia is a leading provider of AI-powered Order-to-Cash (O2C) automation platform that modernizes finance operations for midsize to large global businesses. Many global businesses and shared service centers use Emagia’s Autonomous O2C to transform to digital world-class operations in credit, invoicing and payments, receivables, collections, deductions, cash application and cash forecasting. Emagia solutions improve their customers DSO, cash flow, credit risk, operational cost, compliance and profitability.
