Days Sales Outstanding (DSO) calculation assesses how quickly a company collects payments from its credit sales. It’s computed by dividing accounts receivable by average daily sales, indicating the average number of days it takes to receive payment. A lower DSO suggests efficient cash flow management, while a higher DSO may signal potential cash flow issues or ineffective credit policies.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Add AI to Your Order-to-Cash Process

AR Automation for JD EDwards

AR Automation for SAP

AR Automation for Oracle

AR Automation for NetSuite

AR Automation for PeopleSoft
