In finance, DSO (Days Sales Outstanding) is a crucial metric used to assess the efficiency of a company’s credit and collections policies. It measures the average number of days it takes for a company to collect payments from its customers after making a sale on credit. A lower DSO typically indicates faster cash conversion and better liquidity management, whereas a higher DSO may suggest potential cash flow challenges or inefficiencies in receivables management. This metric is essential for financial analysis and helps businesses optimize cash flow and working capital management strategies.
Reimagine Your Order-To-Cash with AI
Touchless Receivables. Frictionless Payments.
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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.
