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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Touchless Receivables. Frictionless Payments.
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