Accounts Receivable

Days sales outstanding (DSO) - A useful or misused KPI?

Sage 50, Power BI, Accounts Receivable, Days Sales Outstanding

Hugh Johnson @8/22/2018 11:07:50 AM

Days sales outstanding (DSO) - A useful or misused KPI?


Days Sales Outstanding (DSO) is a common KPI for Accounts Receivable. It is often misused as an indicator for the Average Collection Period or Average Debtor Days. What does it really mean, and how can you enrich it with a rolling average DSO measure or trend?


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