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.

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The DSO metric is useful in providing insight into the timeline of the receipts of payments, and their relationship to, when revenue is recognized.

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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.

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