Financial Education

Days Sales Outstanding (DSO)

Average days to collect receivables

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Fundamental

Days Sales Outstanding (DSO)

Average days to collect receivables

Definition

DSO measures how quickly a company collects payment after making a sale. Formula: (Accounts Receivable / Revenue) × 365. Lower DSO indicates efficient collections and better cash flow management.

Related Topics

#receivables #collections #working capital #cash conversion cycle

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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