Daily Sales Outstanding (DSO) is a variation of the traditional DSO metric, focusing on the average number of days it takes for a company to collect payments from credit sales on a daily basis. It is calculated as the ratio of average accounts receivable to average daily credit sales. This metric provides a more granular view of cash flow dynamics, helping businesses manage liquidity more effectively by monitoring daily receivable collections against sales performance.
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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 Enterprise Receivables Management System 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.