Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) is a financial metric that measures the average number of days it takes a company to collect payment from its customers after a sale is made. It is calculated by taking the company's accounts receivable balance and dividing it by the average daily sales. A low DSO is generally considered better as it means that the company is able to collect payments from its customers more quickly, which can improve its cash flow and liquidity position. However, a high DSO may be a sign of a company's weak credit and collection policies or an industry with longer payment cycles.
Additional Details
| Metric Name |
Type |
Default Period Type |
| dso |
fin_metric |
FY |
| Data Format |
Display Format |
Unit |
| float |
number |
days |