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.
Recommended Digital Assets for You
Suggested Resources
Digital Credit: Onboarding the Customer
Global Order-to-Cash: Learn how digital transformation changes your 3Ws- Work, Workforce and Working Capital Cycle
Future of SAP Finance Operations with AI-Powered Digital Assistance
The 3 A’s You Need for the Future of OTC -Automation, Analytics and AI
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
