How’s Your DSO Doing?
From Joe Pacor Hopefully, that’s something you think about often and you realize the answer is not a simple response. That’s because many factors come into play in order to meaningfully answer that question. Days Sales Outstanding is a simple mathematical formula which divides your current outstanding accounts receivable balance by the amount of credit sales, and then multiplies that by the number of days in the period (AR balance/credit sales X # of days in period). This renders a single number, but …
