The Days Sales Outstanding (DSO) ratio assesses the efficiency of a company’s accounts receivable management by measuring the average number of days it takes to collect revenue from credit sales. It is computed by dividing the accounts receivable balance by the total credit sales and multiplying the result by the number of days in the period. A lower DSO ratio signifies faster collections, indicating healthier cash flow and effective credit management practices within the organization.
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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.
