Alongside Days Sales Outstanding (DSO), it’s essential to analyze metrics such as accounts receivable turnover ratio, average collection period, and aging of accounts receivable. Accounts receivable turnover ratio provides insights into how efficiently receivables are converted into cash.
The average collection period offers a complementary view of payment collection efficiency, while aging of accounts receivable helps identify overdue accounts and assess credit risk. Integrating these metrics provides a comprehensive understanding of accounts receivable management performance.
