How to Calculate Days Sales Outstanding (DSO)?

Days Sales Outstanding (DSO) is a measure of how quickly your customers pay their bills. It takes into account the average number of days required to collect accounts receivable payments and converts it with an amount per day so you can see if there's an issue or not! This formula will tell you whether your company has reliable clients since they are paying you more efficiently than other companies in our industry-- putting money directly back into business growth and development. The formula is: Days sales outstanding = 365 days / Accounts receivable turnover

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