What Does Days Sales Outstanding (DSO) Actually Indicate? DSO is a popular credit and collection metric. If it is up, it is assumed that collections are deteriorating. Collections are good if it is down.
Since cash flow is the lifeblood of any business, the sooner the company receives that cash, the better its cash flow and financial position will be. That makes it even more important.
DSO needs to be calculated on a month-to-month (or period-to-period) basis. There are several ways to calculate DSO. With this DSO calculator, you'll have access to all the most useful DSO tools in one place.
The Tool includes -
1. Simple DSO Calculator 2. Average DSO Calculator 3. True DSO Calculator 4. Best Possible DSO (BPDSO) Calculator
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