The formula for Days Sales Outstanding (DSO) is calculated by dividing the accounts receivable by the average daily credit sales. Mathematically, it is expressed as DSO = (Accounts Receivable / Average Daily Credit Sales). This metric helps businesses gauge how quickly they convert credit sales into cash, offering insights into their cash flow management and effectiveness of credit policies.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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Transforming Order-to-Cash with Emagia Global Deployment: Watch the ConvaTec GBS Success Story
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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.
