DSO
Definition
Days Sales Outstanding. Accounts receivable divided by sales for a given quarter, times 91. This number helps determine whether a company is attempting to disguise weakness in its sales.
Use DSO in a sentence
“ As a company we want to have strong sales, to do this we need to use Days Sales Outstanding or the DSO program. ”
“ The DSO metric is useful in providing insight into the timeline of the receipts of payments, and their relationship to, when revenue is recognized. ”
“ Brett calculated the DSO for the company and realized that even though their sales look great, their accounts receivable continued to grow and showed serious issues. ”
