Days Sales Outstanding Powerpoint Ppt Template Bundles
Days Sales Outstanding DSO is a crucial financial metric that measures how long, on average, it takes a company to collect payment from its customers after a sale. A DSO of 100-120 days indicates that, on average, the company takes approximately 3.3 to 4 months to convert its sales into cash receipts. A DSO in this range might be considered high, signifying potential challenges in managing accounts receivable efficiently. High DSO can strain cash flow, necessitating careful credit management, prompt collections, and proactive strategies to reduce outstanding receivables. Regular monitoring and efforts to decrease DSO are vital to improve cash flow and overall financial health.
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