The Days Sales Outstanding (DSO) formula calculates the average number of days it takes for a company to collect payments from its customers. It is computed by dividing accounts receivable by total credit sales and multiplying the result by the number of days in the period. DSO serves as a key indicator of a company’s efficiency in managing its accounts receivable and cash flow, with lower DSO values generally indicating faster collection times and stronger liquidity.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
Recommended Digital Assets for You
Suggested Resources
Global Order-to-Cash: Learn how digital transformation changes your 3Ws – Work, Workforce and Working Capital Cycle
Data-driven Banking & Financial Services
Emagia Cash Application
Improving Order-To-Cash Efficiency Using Emagia Analytics
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
AR Automation for MS Dynamics
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.
