Business
Accounts Receivable: DSO
Receivable turnover and collection.
Track money owed by customers.
Turnover
Credit Sales/Avg AR. Higher=faster.
DSO
365/Turnover=days to collect.
Improve
Clear terms, early payment discounts, follow up.
Frequently Asked Questions
What is DSO?
Average days to collect. 365÷turnover.
Good DSO?
<30 days good. >45 may indicate problems.
Improve?
Clear terms, discounts, follow-ups.